1) (4 pts) Your employer, a large MNC, has asked you to assess its transaction exposure. Its projected cash flows are as follows for the next year: 'Currency Danish krone (DK) British pound () Total Inflow DK50,000,000 2,000,000 Total Outflow DK40,000,000 1,000,000 Current Exchange Rate in U.S. Dollars S.17/1DK $1.60/1 Assume that the movements in the Danish krone and the pound are highly correlated. Provide your assessment as to your firm's degree of transaction exposure (as to whether the exposure is high or low). Substantiate your