Inancial Management (Currency Risk Management)

Doug plc is a UK manufacturing company which operates within the UK and mainland Europe. It has recently put in a competitive bid on a contract, which if won would result in a receipt of 12 million in 12 months time. However the winner of the bid will not be announced for 3 months. Write an essay which discusses:
a.the alternative approaches available to a UK manufacturing company which wishes to minimise the uncertainty caused by fluctuating exchange rates on cash flows both payable and receivable in euros, and
b.the best means of hedging the potential future cash flow of 12 million described above.