Silver Limited (SL) is a large manufacturing concern in Malaysia. It deals in four major product lines. As the financial controller of the company, you are faced with the following situations:

1. SL has made arrangements to export leather shoes to a major customer in USA. It has been agreed that one consignment would be shipped in each quarter and payment thereof would be made at the end of the quarter. SLs sole supplier of leather is in Pakistan and it has also agreed to supply on 3 months credit. The estimated sales and purchases for the first two quarters of 2016 are as follows:

	Sale to customer	Purchase from supplier
First quarter ending March 31, 2016	USD 1,020,000	USD 775,000
Second quarter ending June 30, 2016	USD 1,224,000	USD 1,347,000

Exchange Rates per 1 USD
Spot Rate	MYR 3.030	MYR 3.110
3 months forward premium	0.071	MYR 0.073
6 months forward premium	0.160	MYR 0.164

Interest rates	Deposit	Borrowing
MYR	6.6% p.a.	7.9% p.a.
USD	5.8% p.a.	7.2% p.a.

REQUIRED: Determine which of the following options would be more beneficial to the company:

(i) Hedging through forward cover

(ii) Hedging through money market