International

Business Machines(IBM) Corporation and Nokia Corporation have a strong business

tie. They have agreed to share their risk in the currency market to reduce

their exposures to cash flow volatilities in the future. The agreement states

that Nokia will pay the spot rate as long as it is between USD1.2550/EUR and

USD1.1550/EUR, and will share the risk of exchange rate equally with IBM if it

falls outside this range. The agreement is incepted today and lasts for 1 year.

Nokia imports 500,000 units of microchips each month and must pay the invoice

after a month.

What would be the EURO

cost of import for Nokia if the exchange rate changes to USD1.1215/EUR next

month and the microchip price remains at 150,000 USD per 1000 units. (answer in

two decimals, no dollar sign, no comma separator)