​Assume That the British Pound and Swiss Franc Are Highly

Multiple Choice

​Assume that the British pound and Swiss franc are highly correlated. A U.S. firm anticipates the equivalent of $1 million cash outflows in francs and the equivalent of $1 million cash outflows in pounds. During a ____ cycle, the firm is ____ affected by its exposure.

A) ​strong dollar; favorably
B) ​weak dollar; not
C) ​strong dollar; not
D) ​weak dollar; favorably