payment in poctnds sterling. The distributor sells the sports cars in New Zealand for New Zowind dollars. The New Zealand distributor is unable to carry all the foreign exchange rike med would not sell Bentley models umless Bentley could share some of the foreign exchange risk. Beitley lins agreed that sales for a given model year will initially be priced at a "base" upot rate between the New Zcaland dollar and pound sterling set to be the spot mid-rate at the beginning of thin model year. If the actaal exclange rate is within 4.4% of thint base rate, payment will be mude in poonds. sterling. However, if the spot rate at time of ahipment falls outaide of this +4.5% range, Bentley will share equally the difference as part of the risk sharing agreenem. For the current model your, the base rate is NZS 1,3520K. (a) What are the outside ranges within which the New Zealund importer must pay at the thes current spot rate? [1 mark] (b) If Bentley ships 160 sports cars to the New Zealand distributor at a time when the spot cost to the distributor in New Zealand dollars? [3 marks] (c) If Bentley Automotive ships the same 160 cars to New Zealand at a time when the spot [2 marks] (d) When is such \& risk-sharing agreement of benefit to Bentley or to the New Zealand company? Explain your answer. [2 marks] (e) Apart from risk sharing agreement, provide I more tool which can be used to manage operating exposure proactively, Give an example to support your answer. [2 marks]