Nkhosi PLC is a large Zambian Company specialized in manufacturing designer clothes for celebrities with a presence in Europe, North America as well as Eastern Europe. Nkhosi PLC buys its raw materials from South Africa (SA) owing to the low prices of commodities obtaining in SA. Today, the 1st February 2023, Nkhosi PLC has entered into an agreement with Jing Dung Farming to purchase 3,500 tons of fur from SA at ZARI.2 per ton. The agreement provided, inter alia, that the whole invoice amount is due and payable on 31 May 2023. Subsequently a special board meeting, has been called and scheduled to take place on this afternoon and among the agenda items is an offer from ZANACO PLC, the main bankers for Nkhosi PLC to hedge this payable using a forward contract at an all-inclusive price of K250. A desk research on the Bank of Zambia website shows that the Zambian Kwacha is trading at K0.5/ZAR. The following exchange rates, quoted indirectly, are currently available to Nkhosi Limited: S (ZMW/ZAR) = 2.000 F 180(ZMW/ZAR) = 1.990 F 360(ZMW/ZAR) = 1.981 Required: a) Calculate; i. iii. The kwacha value of the forward exchange contract? (2 marks) The one year expected (future) spot rate predicted by purchasing power parity theory? (2 marks) The annualized forward premium/discount. (2 marks)