international Accounting Question

Better Food Corporation (BFC) regularly purchases nutritional supplements from a supplier in Japan with the invoice price denominated in Japanese yen. BFC has experienced several foreign exchange losses in the past year due to increases in the U.S.-dollar price of the Japanese currency. As a result, BFC's CEO has asked you to investigate the possibility of using derivative financial instruments-specifically, foreign currency forward contracts and foreign currency options - to hedge the company's exposure to foreign exchange risk. - Required: Draft a memo to the CEO comparing the advantages and disadvantages of using forward contracts and options to hedge foreign exchange risk. Make a recommendation for which type of hedging instrument you believe the company should employ and provide your justification for this recommendation