The suggestion illustrates the strategies designed to help the firm address the issue. In this case,
there are two possible solutions to hedging the foreign exchange risk: one strategy based on the
forward market hedge and the other one using the money market hedge.
5. The paper describes how to hedge the foreign exchange risk in detail. For example, whether the firm takes a long or short position on the forward market or how it creates a hedging strategy with
a series of actions on the money market.