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Your company imports a product from a British firm. Assume that your company is obligated to pay 1,000,000 in 90 days in return for the

 Your company imports a product from a British firm. Assume that your company is obligated to pay 1,000,000 in 90 days in return for the product that will be delivered at that time by the British firm. The current spot exchange rate is $1.2500/. Suppose you analyzed the potential change in the exchange rate during the next 90 days and concluded that the exchange rate will fall between $1.1300/ and $1.3700/ with 95.45% probability 90 days from now. Then, there is a 95.45% probability that your company will pay between $___________ and $___________ to offset its British pound liability of 1,000,000.




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