An import-export merchant in Europe contracts on June 30 to buy 1,500 tonnes of Rubber from a supplier in Thailand at a price of 11,820 Thai Baht (THB) per tonne. The Rubber will be transported directly to a customer in Singapore to whom the product has been sold at 482 Singapore dollars (SGD) per tonne. Of the total quantity, 600 tonnes will be shipped at the end of July and the balance at the end of August. Payment to the suppliers is to be made immediately the goods are dispatched, whilst one month's credit from the date of dispatch is allowed to the Singaporean customer. The merchant arranges with his bank to cover these transactions in euro on the forward exchange market. The applicable exchange rates at June 30 are as follows: Spot 1 month forward 2 months forward 3 months forward Thai Baht 107.45-107.75 Plus 0.65-1.05 Plus 0.85-1.75 Plus 1.06-2.50 Singapore Dollars 3.84-3.88 Minus 0.025-0.015 Minus 0.04-0.03 Minus 0.075-0.065 a. Calculate the profit the merchant will make on the transaction