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Australian Car Sales Ltd (ACS) is an Australian-based importer of European motor vehicles. The company will be required to pay 3,000,000 in 180 days time

Australian Car Sales Ltd (ACS) is an Australian-based importer of European motor vehicles. The company will be required to pay 3,000,000 in 180 days time for their latest shipment. Suppose that the current exchange rate is AUD 1.661/EUR. Analysts have forecast that they expect the Euro will strengthen by 2% against the Australian dollar across the next 180 days and the standard deviation of 180-day forecasts of the percentage change in this exchange rate is 5%. If ACS does not hedge, with 95% confidence what is the most that they will expect to pay for this shipment in Australian dollar terms. Provide your answer to the nearest dollar.

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