The current spot rate, 90-day forward rate, and your expectations for spot rates in 90 days for Euros (?) are shown in the following table:

Current Spot Rate	90-day Forward Rate	Expected Spot Rate in 90 days
$1.00 = ?0.8297 ?1.00 = $1.2053	$1.00 = ?0.8333 ?1.00 = $1.2000	$1.00 = ?0.8163 to ?0.8602 ?1.00 = $1.1625 to $1.2250

You have sold an integrated computer network to a German manufacturing company. Your price to cover the cost and profit on this sale is $150,000.00, but in order to win the business in the highly competitive market, you had to agree to price the order in Euros. Based on the current spot rate, you accepted an order price of ?125,000.00 for this sale. You will invoice and receive payment upon delivery of the system in 90 days. If the Euro depreciates to the lower limit of your expected range, your dollar proceeds from the sale will be $145,312.50, which is significantly less than your target price. What action would you take to protect yourself by hedging in the forward market?

		Buy Euros forward
		Sell Euros forward
		Borrow funds in the Euro money market.
		Short sell Euro equity securities