The investor is based in an EU country and has a contractual obligation to make a payment of an amount in GBP 9 Million, how can this investor protect itself against currency fluctuation? (Money market hedge, forward hedge, Options hedge, just use on spot rate) what would be the least risky?

An investor has an account payable of GBP 9,000,000 in 90-days. Recommend a currency strategy for the pending transaction in 2020.

The FX desk at the investors commercial bank forecasts that the spot / exchange rate will be 0.8700 per 1 Euro in 90 days.

Current spot rate: 0.8800 per Euro

90-day forward rate: 0.8895 per Euro

120-day forward rate: 0.8750 per Euro

UK Deposit Rate (annual %) 1.40%

UK Borrowing Rate (annual %) 1.60%

Euro Deposit Rate (annual %) 0.30%

Euro Borrowing Rate (annual %) 0.60%

Investor W.A.C.C (ann. %) 2.50%

Put option available: Premium 1.50% Strike price 0.8700 per

Call option available: Premium 1.50% Strike price 0.8700 per