A Transaction Involving Foreign Currency Will Most Likely Result in Gains

Multiple Choice

A transaction involving foreign currency will most likely result in gains and losses to the reporting entity if the

A) ​forward exchange contract is selling at a premium.
B) ​transaction is denominated and measured in the reporting entity's currency.
C) ​transaction takes place in a country with a tiered monetary system.
D) ​transaction is denominated in a foreign currency and measured in the reporting entity's currency.