Exchange rate risk: a. arises from the fact that the spotexchange rate on a futu

Exchange rate risk: a. arises from the fact that the spotexchange rate on a future date is a random variable. b. appliesonly to certain types of international businesses. c. has beenphased out due to recent international legislation. d. both a andb. Use the following information to answer questions 46-47. Belowis an excerpt from Table 22-1 The Globalization of Product andFinancial Markets that appears in your text. Values are foreignexchange rates reported in The Wall Street Journal. U.S. $equivalent Currency per U.S. $ Country Mon. Mon. India (Rupee)0.03137 31.88 Britain (Pound) 1.5615 30-day Forward 1.5609 90-dayForward 1.5605 180-day Forward 1.5603 Canada (Dollar) 0.7265 1.376530-day Forward 0.7256 1.3782 90-day Forward 0.7236 1.3820 180-dayForward 0.7196 1.3896 Sweden (Koruna) 0.18848 5.3055 30-day Forward0.18829 5.3110 90-day Forward 0.18809 5.3167 180-day Forward0.18795 5.3205