Final answer:
option a,Purchasing products from a nation with an appreciating currency is an example of currency risk, as it can lead to higher costs for importers when paying for goods.
Step-by-step explanation:
An example of a currency risk can be seen in situation A) purchasing products from a nation with appreciating currency. This scenario represents a risk because, as the value of the foreign currency increases relative to one's own currency, the cost of importing goods from that country also increases. If a business has agreed to pay for goods in the future without hedging against this risk, they might end up paying significantly more due to the currency’s appreciation.
When dealing with foreign currencies, appreciating or strengthening currency means that it can buy more of another currency. On the other hand, a depreciating or weakening currency implies it can buy less. This dynamic affects importers negatively when their own currency depreciates or when the currency of their supplier appreciates.