Dell is selling 30,000 units in Europe at an average price of 1,500 per unit. Both the spot and forward exchange rates are $1.20/. The cost of each unit in dollars is $1,300 per unit. The elasticity of demand for Dell computers in Europe is = 1.5.

Which of the following would be an effective hedging when passthrough = 0.8?

		buy $45 million forward
		sell 45 million forward
		buy 24.75 million forward
		buy put options on with total contract size close to 24.75 million