You are a USD based company. You have to pay away today USD$5,000,000$ and expect to receive USD$5,000,000$ plus in $31$ days time. You have surplus funds in the UK of GBP$3,500,000.$ Given the rates below, should you swap sterling into USD or fund yourself directly in the US market? The UK company needs the funds in $31$ days.

Rates:

Spot GBP$/$ USD $1\mathrm{.}63561\mathrm{.}6366$

Forward $1\mathrm{.}63471\mathrm{.}6359$

US $31$ day money $431/32-427/32$

UK $31$ day money $55/8-515/32$

US company can borrow at cost of funds $+(1)/(2)\%$