With respect to British pound, the following scenario's exists in the foreign exchange markets nand money markets in india and britian.

Spot Rate ( RS/ Pound) - 80.20 and 80.50

6 month forward rate ( RS/ Pound) - 81.50 and 82.50

Interest rates

Indian rupee- 10.00 - 10.50%

British pound - 5.50 - 6.00%

ITL Ltd expects to receive pounds 10,000 in 6 months and faces a choice of covering the exposures either through money market or forward market. find which hedge is more efficient