Today the spot rate between US dollars $($USD$)$ and Australian dollars $($AUD$)$ is USD$1=$AUD$1\mathrm{.}6290,$ and the current spot price of gold is USD$1,500$ per ounce. You are a large Australian jewellery maker and expect to take delivery of $800$ ounces of gold in $3$ months time. You decide not to hedge your exposure. When you are ready to buy the gold in $3$ months, the spot price of gold is USD$1,300$ per ounce, and the spot exchange rate is USD$1=$ AUD$1\mathrm{.}5000.$

$1.$ The Australian jewellery maker is exposed to the risk of the gold price Answer $1$ Question $3$

rising

$2.$ The Australian jewellery maker is exposed to the risk of the USD Answer $2$ Question $3$

appreciating

$3.$ In three months time, when the Australian jewellery maker buys $800$ ounces of gold at the spot price for gold, the payment in AUD to buy $800$ ounces of gold will be AUD Answer $3$ Question $3$

million. Give your answer in millions to two decimal places or your answer will be incorrect.