Given the following information:

90-day U.S. interest rate = 6%

90-day Chinese interest rate = 5%

90-day forward rate of Chinese Yuan = $.400

Spot rate of Chinese Yuan = $.404

Biqing Co. in the United States will need 300,000 Chinese Yuan in 90 days, and the firm wants to hedge this payables position. Which way is better, a forward hedge or a money market hedge? Please justify your answer with estimated costs for each type of hedge