Please answer the following questions in no less than 100 words:\

What is the statistical interpretation of the expected future spot rate?

The cash manager of a U.S. company needs to buy 1,000,000 British pounds to pay a British supplier. A foreign currency broker quotes her a bid-ask rate of .4865-.5116/US$. What will be the dollar cost of the 1,000,000 pounds? Partial credit will be awarded if you show your work and/or provide an explanation on how your answer is derived.