Best Hedging Strategy for Currency Risk

Blue Sky Investments, a multinational corporation, is concerned about potential foreign currency risk associated with its anticipated cash flows from operations in Europe. The company's management, expecting significant cash inflows in euros (EUR) over the next six months, is exploring options to hedge this exposure. They are considering three different hedging strategies: a forward contract, an options strategy, and a currency swap.

As a CFA Level 3 candidate, your task is to evaluate these hedging strategies based on their effectiveness in mitigating currency risk and preserving cash flow. Which of the following strategies would provide the best protection against unfavorable exchange rate movements for Blue Sky Investments?