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A U.S. company sells merchandise to a foreign company denominated in U.S. dollars. Which of the following statements is true

A U.S. company sells merchandise to a foreign company denominated in U.S. dollars.  Which of the following statements is true?

A) If the foreign currency appreciates, a foreign exchange gain will result.

B) If the foreign currency depreciates, a foreign exchange gain will result.

C) No foreign exchange gain or loss will result.

D) If the foreign currency appreciates, a foreign exchange loss will result.

E) If the foreign currency depreciates, a foreign exchange loss will result.

Answer: C  

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