An Italian clothing company is considering exporting its product to a well$-$established department store in Japan. After analyzing the exchange risks, it decides to go with a hedging strategy that is highly flexible and will allow it to benefit from any favorable movements in the exchange. What hedging strategy did it choose?

Question $18$Select one:

a$.$

FX forward contracts

b$.$

FX options

c$.$

FX swaps

d$.$

FX ratio