Quesa recently purchased 3.2 million worth of materials on credit. The payment is due in 30 days. The spot exchange rate is currently quoted as 108.04 - 108.05/$ and that the 30-day periodic rate on Japanese securities is 0.105 percent. The 30-day U.S. rate is 0.7762 percent. The 30-day forward exchange rate is 107.75/$. A call option can be purchased at a premium 1.2 percent at a strike price of 107.75/$. Compare the outcomes of hedging the 30-day payments by Quesa through the following hedging strategies:

i) Forward market

ii) Money market

iii) Option market

iv) Based on the calculations of the above methods, select the best/optimal hedging strategy for Quesa in managing the 30-days payable. Give reason for your answer.