Question 10 Not yet answered Marked out of 1.00 K-Roo Ltd., an Australian firm, has a USD {amt} 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: USD0.81/AUD Neutral zone: USD0.617/AUD to USD0.904/AUD. K-Roo and Ala Co. agree to split the exchange rate risk equally. If the spot exchange rate in one year is USD1.108/AUD, what is the realized contractual exchange rate at which K-Roo and Ala Co. will transact? Flag question O a. 0.9120 O b. 0.7080 O c. Not enough information O d. 0.81 O e. 1.108