A U.S.-based MNC exports machine tools to the eurozone and imports parts and raw materials from the eurozone. The MNC just signed a contract sell its products to an importer in the eurozone who requested to make payment in euros. At the current spot rate of $1.0680/ , the shipment is worth $100 million. At the same time the MNC signed a contract to buy parts from a eurozone supplier and accepted to settle its payment in euros. At today's spot rate of $1.0680/ , the shipment is worth $40 million. Both contracts require delivery and settlement in three months.

Determine the MNC's FX exposure: