US Firm Submitted a Fixed Bid for a Euro Multimillion

US firm submitted a fixed bid for a Euro multimillion project in Ukraine. The contract will be awarded in 12 months and the company knows there will be no advance payments. The company

A) should pay the premium for a 3 months put currency option to hedge the quotation exposure.
B) should write 3 months put currency option, receive the premium and roll it forward.
C) should buy 12 months put option and limit the loss to the premium amount if the bid gets rejected.
D) should get 1 year Euro denominated loan equal to the bid amount.

Correct Answer:

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