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Risk manager Camila De Leon of Johnson Chemicals is considering two options for the firm's supplier portfolio. Option 1 uses two local suppliers. Each has

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Risk manager Camila De Leon of Johnson Chemicals is considering two options for the firm's supplier portfolio. Option 1 uses two local suppliers. Each has a "unique-event" risk of 4.5%, and the probability of a "super-event" that would disable both at the same time is estimated to be 1.4\%. Option 2 uses two suppliers located in different countries. Each has a "unique-event" risk of 11%, and the probability of a "super-event" that would disable both at the same time is estimated to be 0.18% a) The probability that both suppliers will be disrupted using option 1 is (round your response to five decimal places)

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