Duke Inc. is a U.S. producer of spicy cheese products. Dukes balance sheet has USD 200 million in equity, USD 20 million in USD-denominated net debt, and USD 40 million in EUR-denominated net debt. Dukes business exposure to the EUR is:1.20. If Duke Inc. would issue USD 60 million of new EUR-denominated net debt in addition to its existing debt, what would the companys new FX equity exposure be?

-0.78 (Not it)

-1.94

-1.79

-1.42