Dage K-Roo Ltd., an Australian firm, has a USD 355 million payable in one year that it wants to hedge, and enters into a risk sharing arrangement with its supplier, Ala Co. The terms of the risk sharing contract are the following: Base rate: AUD0.92/USD Neutral zone: AUD0.828/USD to AUD1.012/USD. K-Roo and Ala Co. agree to split the exchange rate risk equally. If the spot exchange rate in one year is AUD1.15/USD, how much must K-Roo pay? a. 351.0950 million b. 368.6497 million c. 315.9855 million d. 24.4950 million e. 408.2500 million Next page