Apple is selling 30,000 units in Europe at an average price of 1,500 per unit. Both the spot and forward exchange rates are $1.20/. The cost of each unit in dollars is $1,300 per unit. The elasticity of demand for Apple computers in Europe is = 1.5.

Now consider a depreciation of Euro (relative to US dollar) from $1.20/ to $1.08/ and assume zero passthrough. What is Apple's exposure?

a. $45 million

b. $20 million

c. 45 million

d. 20 million