Briefly comment and point out something interesting from the following post: As Mr. Peters, I would first evaluate the exchange rate risk by analyzing historical trends and economic factors impacting the pound-euro exchange rate over the next three months. Then, I would consult with the banker to understand hedging options to mitigate this risk while maintaining profitability. Next, I would compare the costs and benefits of various hedging strategies, particularly evaluating the implications of entering into a forward contract to sell euros for pounds at a predetermined rate. Additionally, I would explore alternative risk management approaches like natural hedging or diversification. Finally, I would make an informed decision based on the analysis and advice received, considering factors such as risk tolerance and the potential impact on the company's competitiveness and profitability.