MK Co. imports goods worth 400,000 Singapore dollars and it has to pay for the imports in 90 days. It can purchase a 90-day forward contract on Singapore dollars at $.50 or purchase a call option contract on Singapore dollars with an exercise price of $.50 to cover its payables. This morning, the spot rate of the Singapore dollar was $.50. At noon, the central bank of Singapore raised interest rates, while there was no change in interest rates in the U.S. These actions immediately increased the degree of uncertainty surrounding the future value of the Singapore dollar over the next three months. The Singapore dollars spot rate remained at $.50 throughout the day. MK Co. is convinced that the Singapore dollar will definitely appreciate substantially over the next 90 days. Would a call option hedge or forward hedge be more appropriate given its opinion? Show calculations to explain your answer.