K-Roo Ltd., an Australian firm, has a USD 25 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: AUD1.34/USD Neutral zone: AUD1.206/USD to AUD1.474/USD. K-Roo and Ala Co. agree to split the exchange rate risk equally. If the spot exchange rate in one year is AUD1.675/USD and the futures rate in one year is AUDO.938/USD, how much must K-Roo pay? a. 440.7930 million b. 462.8327 million c. 396.7137 million d. 30.7530 million e. 512.5500 million