a. Buy the required 20,000 metric tons of copper and incur storage costs in London. Payment occurs on April 1, so the present value of the cost is the same as the actual cost.

b. Cover both commodity and currency risks through forward contracts of matching maturities in the respective markets. Payment doesn't take place until October 1.

c. Leave both commodity and currency positions uncovered. The DM cost of this option cannot be computed since no information is given as to the projected price of copper or the projected DM value of the pound six months hence.