Northrim inc. (nri), imports extreme condition outdoor wear and equipment from the allofit territories company (atc) located in canada. with the steady decline of the u. s dollar against the canadian dollar nri is finding a continued relationship with atc to be an increasingly difficult proposition. in response to nri's request, atc has proposed the following risk-sharing arrangement. first, set the current spot rate as the base rate. as long as spot rates stay within 5% (up or down) nri will pay at the base rate. any rate outside of the 5% range, atc will share equally with nri the difference between the spot rate and the base rate. if the current spot rate is c$1.20/$, what are the upper and lower limits for trading to take place at c$1.20?