Company E$1$ is a U$.$S$.$ multinational that has net cash outflows of pounds and euros. Company B$2$ is a U$.$S$.$ multinational that has net cash outflows of pounds and net inflows of euros. Both companies are of similar size and operations. The pound and the euro are both highly positively correlated with each other when measuring their movements versus the USD. Which of these two firms has a greater FX risk exposure?

Neither company has any exposure to FX risk.

The two companies have similar levels of exposure

B$2$

E$1$