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
|
Value of currency
|
|
C$ (Canadian dollar)
|
C$ 3.2m
|
C$ 2.56m
|
£0.43
|
|
$ (US dollar)
|
$2m
|
$1m
|
£0.60
|
Provide your assessment as to your firm's degree of transaction exposure (as to whether the exposure is high or low). Explain your answer.