Hedging Currency Risk for ABC Corp

A multinational corporation, ABC Corp, conducts significant business in both the US and Europe. Due to fluctuations in exchange rates, ABC Corp is concerned about potential losses when converting Euro revenues back to US dollars. To mitigate this risk, ABC Corp is considering using a financial instrument to hedge against currency fluctuations.

Which of the following options represents an effective strategy for ABC Corp to hedge its currency risk arising from Euro revenues?