Suppose today's spot rate on the euro is $1.31/ and the 3-month forward rate is $1.30/. How can a U.S. exporter who is expected to receive 1,000,000 in three months hedge foreign exchange risk?

		Enter into a forward contract today to buy 1,000,000 in three months
		Enter into a forward contract today to sell $1,300,000 in three months
		Buy 1,000,000 at the spot rate today
		Enter into a forward contract today to sell 1,000,000 in three months
		Enter into a forward contract today to buy $1,310,000 in three months