Du Pont has entered into a currency risk sharing arrangement with British Gas (BG). Under the contract, Du Pont agrees to pay British Gas a base price of $10 million for gas purchases, but the parties would share the currency risk equally beyond a neutral zone, specified as a band of exchange rates: $1.671.73:1. Within the neutral zone, Du Pont must pay BG the British pound equivalent of $10 million at the base rate of $1.70. Suppose the spot rate at the time of payment is 1 = $1.63. How much will Du Pont owe British Gas?

b) $9,702,381 <- answer : WHY?