A South African firm has sold some heavy machinery to a European customer. It thinks that it is likely to receive Euros (EUR) in two months from now. How can the South African firm hedge this exposure?

I. Enter into a forward contract to buy Euros in 2 months

II. Enter into a forward contract to sell Euros in 2 months

III. Buy a put option on the Euro that expires in 2 months.

IV. Buy a call option on the Euro that expires in 2 months.

V. Ask the customer to pay in South African Rand (ZAR).