How could a business based in the United States but with significant operations in Germany reduce the exchange rate risk it faces when it brings profits from Germany back to the United States in six months?

It could change the Euros into British pounds before changing the British pounds into dollars. 

It could wait longer to change the Euros into dollars. It could change dollars into Euros today, and then change the Euros back into dollars in six months. 

It could use a forward exchange rate contract to lock in an exchange rate for the dollars it wants to exchange in order to get Euros in six months. 

It could use a forward exchange rate contract to lock in an exchange rate for the Euros it wants to exchange in order to get dollars in six months.

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