"What are ways in which a company may hedge the fluctuation of foreign currency? Which of these ways do you think is the most effective?

"What are ways in which a company may hedge the fluctuation of foreign currency? Which of these ways do you think is the most effective? Explain in 200 words."

Foreign currency transactions are those transactions whose terms aredenominated in a currency other than the entity’s functional currency .Foreign currency or transactions risk is a risk that...