Bobcat company, U.S. based manufacturer or industrial equipment, just purchased a Korean Company that produces plastic nuts and bolts for heavy equipment. The purchase price was WON7,500 million. Won1,000 million has already been paid, and the remaining won5/6,500 is due in six months. Today's exchange rate and interest rate quotations are as follows:

Spot Exchange Rate: Won1,110/$

Six-month Forward Rate: Won1,175/$

Korea won interest rate: 16% per annum

U.S. interest rate: 4% per annum

Premium on six-month call option with strike price Won1,200/$ is: .$0.03

Premium on six-month put option with strike price Won 1,200 is: $.04

Bobcat's own six-month forecast for won rate: Won1,165/$

Question: Compare alternative ways that Bobcat might deal with its foreign exchange exposure, including doing nothing. What do you recommend and why?