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 $5\mathrm{.}8\%,$ and the probability of a$$ "super$-$event" that would disable both at the same time is estimated to be $1\mathrm{.}3\%.$ Option $2$ uses two suppliers located in different countries. Each has a$$ "unique$-$event" risk of $14\%,$ and the probability of a$$ "super$-$event" that would disable both at the same time is estimated to be $0\mathrm{.}27\%.$

Part $2$

$$a$)$ The probability that both suppliers will be disrupted using option $1$ is

$$

$0\mathrm{.}01674($round your response to five decimal$$ places$).$

Part $3$

$$b$)$ The probability that both suppliers will be disrupted using option $2$ is

$$

$0\mathrm{.}00025($round your response to five decimal$$ places$).$