Ford purchased electric motors from Nidec (Japanese company) and was billed 200 million payable in three months. Two companies agree to share the currency risks. In the Price Adjustment Clause, the neutral zone is 115.38/$ - 129.42/$, the base rate is 122.4/$ and both parties will share the currency risk beyond a neutral zone. How much each party have to pay/receive if the exchange rate is 117.21/$s

How much each party have to pay/receive if the exchange rate is 132.12/$

a. Ford pay 202.01 million; Nidec receives $1.529 million.

b. Ford pays $1.529 million; Nidec received 202.01 million.

c. Ford pay 213.51 million; Nidec receives $1.616 million.

d. Ford pay $1.616 million; Nidec receives 213.51 million.