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Your employer, a large MNC, has asked you to assess tts transaction exposure. Its projected cash flows are as follows for the next year. Danish

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Your employer, a large MNC, has asked you to assess tts transaction exposure. Its projected cash flows are as follows for the next year. Danish krone inflows equal DK50,000,000 while outflows equal DK30,000,000. British pound inflows equal E5,000,000 while outflows equal E3,000,000. The spot rate of the krone is 50,14 , Whule the spot rate of the pound is $1:41. Assume that the movements in the Danish krone and the British pound are highly correlated. Provide your assessment as to your firm's degree of transaction exposure (as to whether the exposure is high of low). Substantiate your answer. Use a minus sign to enter a negative value, if any. Round your answers for net inflows to the nearest whole number and for values of exposure to the nearest dollar. The kronet expesure shows net inflew, the pound exposure shows net inflow. Thus, their exposure should ber exchange rates against the 0.5 . dollar continue to be highly correlated

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