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

Currency Total Inflow Total Outflow Current Exchange Rate in U.S. Dollars

Danish krone (DK) DK50,000,000 DK40,000,000 $.15

British pound () 1,000,000 3,000,000 $1.50

Assume that the movements in the Danish krone and the pound are highly positively correlated. Your firms degree of transaction exposure is _________

	A.	low
	B.	high