Consider a U Ignoring Transaction Exposure in the Yen,the Translation Exposure Will Indicate

Multiple Choice

Consider a U.S.-based MNC with manufacturing activities in Japan.The result of a change in the ¥-$ exchange rate on the assets and liabilities of the consolidated balance sheet is $$\begin{array} { l l l } \text { Exposed assets } & \text { ¥ } & 700,000,000 \\\text { Exposed liabilities } & \text { ¥ } & 500,000,000\end{array}$$ Ignoring transaction exposure in the yen,the translation exposure will indicate a possible need for a "balance sheet hedge" of

A) ¥200,000,000 more liabilities denominated in yen.
B) ¥200,000,000 less assets denominated in yen.
C) ¥200,000,000 more liabilities denominated in yen or ¥200,000,000 less assets denominated in yen.
D) none of the options