You are an US firm with a subsidiary in France. Your subsidiary will produce revenues of Euro $500$ million in $6$ months' time. You will bring that money to the US in $6$ months time.

You wish to avoid currency risk, for example if the Euro weakens against the Dollar then the Dollars you will get from converting Euros to Dollars will fall.

You wish to lock in the amount of dollars you get in $6$ months' time. Which of the following set of actions $($ignoring quantities involved$)$ will accomplish this? Assume there are no transactions costs.

Buy Dollar riskless bonds, sell Euro riskless bonds, convert Euros to Dollars in the Spot Market.

Sell Dollar riskless bonds, sell Euro riskless bonds, convert Dollars to Euros in the Spot Market.

Buy Dollar riskless bonds, sell Euro riskless bonds, convert Dollars to Euros in the Spot Market.

Buy Dollar riskless bonds, buy Euro riskless bonds, convert Euros to Dollars in the Spot Market.