A large institutional investor, Global Investments Ltd., is considering implementing a currency overlay strategy to hedge against potential currency fluctuations affecting its international equity portfolio. The investment committee is evaluating three options regarding how the currency overlay would be structured to manage risks effectively.

The committee is particularly concerned about how to source and implement the necessary currency hedges given their size and the liquidity of the currencies involved. They aim to ensure that their overarching investment strategy and objectives remain intact while managing currency risk.