British Beer Import Inc. (BBl) located in Snodsbury in Worchestershire county imports different kinds of beer (Duvel, Vedett, La Chouffe, De Koninck etc) from Duvel Moortgat breweries located in Puurs, Belgium\ Due to the Brexit a lot of people expect a serious depreciation of the British Pound versus the Euro. With these uncertainties related to the Euro-Pound exchange rates, BBI is finding a continued relationship with Duvel Moortgat to be an increasingly difficult proposition. At the same time.\ Duvel Moortgat is one of the largest suppliers of BBI, and BBI is one of the larger export partners for Duvel Moortgat. This means that they both hope to continue their relationship. BBl operates on thin margins.\ You are an advisor to BB's Board of Directors. In preparation of advice to the Board on how to handle the currency risk, you chart the following ISsues.\ In response to a request of BBI, Duvel Moortgat has proposed the following risk-sharing arrangement.\ First, set the current spot rate of 0.8633/ as the base rate. As long as spot rates stay within 5% (up or down) BBIB will pay at the base rate Any rate outside of the 5% range, Duel Moortgat will share the difference between the spot rate and the base rate equally with BBIB\ y answered correctly: 2\ y answered incorrectly 2\ on text\ 1. If the current spot rate is 0.8633/, what are the upper and lower limits for trading to take place at 0.8633/? Show your calculations and round off at 4 digits behind the comma. (5 points)\ 2. If BBI has to pay 100,000 because Duvel Moortgat delivered a new order of goods, and the due date is today, and the current spot rate is 0.9020/, how much would BBI have to pay when recalculated to British Pounds? Show your calculations. (5 points)\ 3. Today, BBI puts in an order valued at Euro 60,000 and the spot exchange rate is 0.9406/C. Based on the risk sharing agreement, how much does BBI need. in GBP to pay for this order? Show your calculations in detail with 4 digits behind the comma (10 points).