Please help me with the following question showing all working and some explanations to help me understand

4 (a) The table below present the Big Mac Index published by the Economist. 100 marks The hamburger standard Under(-)/over(+) valuation Actual dollar against the dollar, % Big Mac prices Implied PPPt exchange rate raw adjusted for Country in local currency in dollars* of the dollar July 25th index GDP per person United States! $4.07 4.07 Argentina Peso 20.0 4.84 4.13 101 Australia A$4.56 4.94 0.92 12 Brazil Real 9.50 6.16 1.54 149 Britain E2.39 3.89 1.63 Canada C$4.73 5.00 0.95 24 Chile Peso 1,850 4.00 58 China Yuan 14.7 2.27 6.45 Colombia Peso 8,400 4.74 1,771 108 What is the over- or under-valuation of the Canadian dollar and the Chilean Peso? What is the PP implied spot exchange rate for US dollar and the Chinese Yuan? Derive your answer from Law of One Price. An import-export merchant in the UK contracts on June 30 to buy 1,500 tonnes of Rubber from a supplier in Thailand at a price of 10,820 Thai Baht (THB) per tonne. The Rubber will be transported directly to a customer in Singapore to whom the product has been sold at 475 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 GBP's on the forward foreign exchange market. The applicable f exchange rates at June 30 are as follows: Thai Baht Singapore Dollars Spot 107.45-107.75 3.84-3.88 1 month forward Plus 0.55-1.05 Minus 0.025-0.015 2 months forward Plus 0.80-1.75 Minus 0.05-0.04 3 months forward Plus 1.06-2.50 Minus 0.065-0.050 (a) Calculate the profit the merchant will make on the transaction. (b) Explain briefly the necessary steps required if: The July Shipment was cancelled. (ii) The July shipment was delayed until October. (100 marks) 6 | Page