Assume the following information:

90day U.S. interest rate = 2%

90day Mexican interest rate = 1.5%

90day forward rate of Mexican peso = $0.05

Spot rate of Mexican peso = $0.055

Assume that the XYZ Co. in the United States will need 300,000 peso in 90 days. It wishes to hedge this payables position. Would it be better off using a forward hedge or a money market hedge? Explain your answer with relevant quantitative support