Holden Ltd is scheduled to make a payment of €1,000,000 in 90 days to Renault in connection with a shipment of the engin

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Holden Ltd is scheduled to make a payment of €1,000,000 in 90
days to Renault in connection with a shipment of the engine
component that Holden is purchasing from Renault. Suppose that the
current exchange rate is €0.58/$, that analysts are forecasting
that the dollar will appreciate by 2% over the next 90 days, and
that the standard deviation of 90-day forecasts of the percentage
rate of appreciation of the dollar relative to the euro is 8%. If
Holden does not hedge its transaction exchange risk, what is the
highest value from the range of possible dollar costs that
incorporates 68.26% of the possibilities? Select one: a. $1,834,189
b. $1,567,398 c. $545,200 d. $638,000