Foreign Exchange Transaction Exposure

Micca Metals, Inc. is a specialty materials and metals company located in Detroit. The company specializes in specific precious metals and materials that are used in a variety of pigment applications in many other industries, including cosmetics, appliances, and a variety of high tinsel metal fabricating equipment. Micca just purchased a shipment of phosphates from Morocco for 6,000,000 Dirhams payable in six months. Micca's cost of capita is 8.6%. The following quotes are available in the market:

                                       U.S                Morocco
6 month interest rate for borrowing   6% p.a.               8% p.a.
6 month interest rate for investing   5% p.a.               7% p.a
Spot exchange rate                    $1               10 dirhams
6 month forward rate                   $1                  10.4 dirhams

Six months call options on 6,000,000 Dirhams at an exercise price of 10 Dirhams/$ are available from Bank Al-Maghrub at a premium of 2%. Six month put options on 6,000,000 Dirhams at an exercise price of 10 Dirhams per dollar are available at a premium of 3%. Compare and contrast alternative ways that Micca might hedge its foreign exchange transaction exposure. What is your recommendation?