CHAPTER 10 QUIZ 2 Assessing Transaction Exposure. 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 (£) £2,000,000 £1,000,000 $1.50 Assume that the movements in the Danish krone and the pound are highly correlated. Provide your assessment as to your firm- degree of transaction exposure (as to whether the exposure is high or low). Substantiate your answer.