$5\mathrm{.}1.$ Background:

Rumi Limited, a South African import company, regularly purchases goods from international suppliers, primarily

denominated in US dollars $($USD$).$ The company seeks to analyze the costs associated with importing goods using

different exchange rate mechanisms, including spot rates, forward contracts, and futures contracts.

Assumptions:

$--$ Current spot exchange rate: ZAR$/$USD $15\mathrm{.}00$

$--$ Forward contract rate for six months: ZAR$/$USD $15\mathrm{.}30$

$--$ Future contract rate for six months: ZAR$/$USD $15\mathrm{.}20$

$--$ Rumi Limited plans to import goods worth USD $100,000$ in six months.

You are required to use the information provided above to advise Rumi Limited on the cost comparison and

consequences of importing goods using spot, forward, and future rates. $($Show all calculations to justify your

answer$).$