Currency Hedging Strategy for Global Tech Inc.

Consider a multinational corporation, Global Tech Inc., that derives 70% of its revenues from Europe and 30% from the United States. The company is looking to hedge its exposure to fluctuations in the EUR/USD exchange rate as it anticipates a significant increase in dollar-denominated expenses due to upcoming investments in the U.S. market.

Global Tech Inc. currently has the following exposure: €1 million receivable in 6 months from European clients and $300,000 payable in 3 months for U.S. suppliers. The company is evaluating three currency hedging strategies:

1. Entering into a forward contract to sell €1 million and buy USD at the current forward rate.
2. Using options to purchase €300,000 at a predetermined rate to cover the U.S. supplier payments.
3. Entering into a money market hedge by borrowing in euros to cover the receivable and converting euro proceeds into dollars at maturity.

Which hedging strategy minimizes currency risk while maintaining flexibility for Global Tech Inc.?