Hedging Currency Risk for Multinational Operations

ABC Corporation, a U.S.-based multinational firm, conducts significant business in Europe. Due to fluctuating exchange rates between the U.S. dollar (USD) and the Euro (EUR), ABC Corporation is exposed to currency risk. In order to hedge against this risk, ABC Corporation considers various financial instruments. The CFO is particularly interested in minimizing the impact of unfavorable currency movements on the company's earnings from its European operations.

Which of the following hedging strategies would be the most appropriate for ABC Corporation to employ in order to effectively manage its currency risk?