Choice "D" is correct. Since Platinum is going to receive euros in 30 days, it will want to lock in the price of euros now. The way to do that is to enter into a forward contract (referred to in the text as a forward hedge) to sell euros in 30 days. The price will be fixed now, but the transaction will not occur until the end of the 30 day period. A futures contract might be able to be used also. Note that, with the fixed price, Platinum will not be hurt if the price of euros in terms of dollars falls, but it will also not benefit if the price of euros in terms of dollars rises. In this question, the treasurer was concerned about the price of euros dropping.
Choice "b" is incorrect. Buying 30,000 euros now will not reduce the risk of a drop in the value of the euro. In fact, the risk will double since the company will have 60,000 euros in 30 days.
Choice "c" is incorrect. Buying an interest rate swap will do nothing to reduce the risk of a drop in the value of the euro. Interest rate swaps might reduce the risk of changes in interest rates. Choice "a" is incorrect. Platinum can reduce the risk of a drop in the value of the euro by using the appropriate hedge. Hedges are often used to reduce currency risk.