1. An importer in Singaporean imports from the US. The business is small, so the firm cannot carry all of the foreign exchange risks, and only wants to do business with US exporters with Risk Sharing. In their contract with risk sharing agreement, both parties agree to use S$74/$ as the base spot rate, and there will be four shipments each year with a value of $150,000 (or S$11,100,000 when the contract is signed) per shipment. On the one hand, as long as the actual exchange rate is within 4% of that base rate, payment will be made in Dollar, and Singapore importer carries all foreign exchange risk. On the other hand, if the spot rate at the time of shipment falls outside of this 4% range, both parties will share equally (50/50) the difference between the actual spot rate and the base rate. Assume both parties have a long-term relationship, and the Singaporean importer pays the US business the same day as the shipment. How much the Singaporean importer needs to pay each time if the future spot exchange rates are S$65/$, S$70/S, S$72.5/$ and S$82/$, respectively over these 4 shipments? (28 points)