Notes for Answering that portion of the case:

Assume $214$ days between the date of February $14$th$,2012$ and September ${15}^{th},2012$ when the Euro exposure of $lo{n}_3,000,000$ receivable occurs.

To assess alternative ways of hedging, I have made it easy for you by pulling out the more important and relevant data from the Tables given in the case at the end of chapter $8$ so you can use them in answering the questions of this case: ADG has a ${}_{3,000,0}$ receivable in $214$ days on September ${15}^{th}.$ The current spot exchange rate $(S)=$$$\frac{1\mathrm{.}3088}{E},7-$month forward exchange rate $(F)=$$$1\mathrm{.}3090,$ the $7-$month dollar interest rate $($bid$)=0\mathrm{.}78\%$ and $7-$month euro interest rate ask$)=1\mathrm{.}40\%.$ The put option on the euro with strike $($exercise$)$ price of $$1\mathrm{.}31$ sells for a premium of $5\mathrm{.}09$ cents $($Ask$)$ per euro.

Question: Compare three alternative hedging methods for this: Forward, money market, and option hedges. Hedging with futures is often inconvenient due to the standardized maturities and contract size and also possibly thin trading.