Hedging Currency Risk in Foreign Investments

As a portfolio manager for a global equity fund, you are concerned about a potential decline in the value of your foreign investments due to currency fluctuations. You currently hold a position in European equities that has a market value of €1,000,000. The current exchange rate is 1.10 USD per Euro, and you are worried that the Euro may depreciate against the USD over the next six months.

Discuss the hedging strategies you could employ to mitigate the currency risk associated with your European equity position. Include at least two different hedging techniques and explain the mechanisms through which they would protect your portfolio from currency risk.