SOLVE ASAP PLEASE

Q.1. An MNC based in USA, determines as of April 1 that it will need 200 million Chilean pesos to purchase supplies on July 1 (in 90 days). It negotiates an NDF with a local bank as follows;

Buy 200 million Chilean pesos.

Settlement date: July 1.

Reference index: Chilean pesos closing exchange rate (in dollars) quoted by Chiles central bank in 90 days.

If at the time of the NDF Agreement the Chilean peso is valued at $.0025, calculate the dollar amount of the position taken

by the company? 0.5 Mark

If on the settlement date (July 1), value of the reference index for peso decreases to $.0020 calculate the value of the

position specified in the NDF? 0.5 Mark

How will the NDF be settled? 1 Mark