Question 15 Not yet answered Marked out of 1.00 P Flag question K-Roo Ltd., an Australian firm, has a USD 197 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: AUDO.91/USD Neutral zone: AUDO.819/USD to AUD1.001/USD. K-Roo and Ala Co. agree to split the exchange rate risk equally. If the spot exchange rate in one year is AUD 1.1375/USD, how much must K-Roo pay? a. 192.7152 million O b. 202.3510 million O c. 173.4437 million O d. 13.4452 million O e. 224.0875 million