You are working as Finance Manager or Accounting Manager of a company located in Oritario that makes your functional currency as CAD. You have bought some products from India worth USD 1 million and you have to pay to the Indian suppller after 6 (six) months. (Today on 1tt June, 2023 USD is trading at 75 INR). That certainly means that you do not need Indian currency today but after 6 months you will need Indian currency equivalent to 1 million CAD. You have few options to hedge your transaction and settle this global payment: (1) Forward: Enter into a Forward rate agreement with a bank/FI's in Canada. (2) Option: CALL on Indian currency or PUT on Canadian Dollar. (3) Open a FD in an Indian bank in INR. (4) Short sale US Dollars as global payments are usually settled down in USD. Compare the strategy (1) Forward with strategy and strategy (3) open a FD and decide which option is better for your company. The forward rate offered by Scotia Bank in Canada on 1st June 2023 for 1st Dec. 2023 is 1 USD = INR. 78 and forward premium is USD 13,750 . The Interest rate in Canada is giving 2% interest yearly and interest rate in India is 8% interest yearly. Part 1: Which Hedging Strategy is better for your company based on the above information Strategy (1) or Strategy (3)