Roza Ltd$.$ is a Galway$-$based company which will make a payment of US $$570,000$ to a supplier in the USA one year from now. The following information is available:

The spot exchange rate today is US $$1\mathrm{.}16=1.$ For one year forward contracts, the US $ is at a premium of US $$0\mathrm{.}02.$

Roza Ltd$.$ can borrow or lend money in either US$ or $.$ The interest rates for one year are $1\%($for US $ loans and deposits$)$ and $5\%($for $$ loans or deposits$).$

Required:

Roza Ltd$.$ has decided to hedge its foreign currency exposure in relation to this forthcoming payment using either a forward contract or a money market hedge. Which of these methods of hedging do you recommend? Provide detailed calculations to support your answer.