You are bidding on a contract in a foreign currency and you are not sure if you will win the bid.However,the analysis in your bid will be flawed if the foreign currency exchange rate changes between now and when you know whether you have won the contract.The best course of action to hedge your position is

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The best course of action is to purchase an option to sell foreign currency for your currency. This is because if you win the contract, you will have a future cash inflow in the foreign currency and if the exchange rate changes unfavorably, you could face a significant loss. By purchasing an option to sell the foreign currency, you can limit your potential losses while still benefiting from any favorable exchange rate movements. If you don't win the contract, you can simply let the option expire. This type of option is known as a put option.

You Are Bidding on a Contract in a Foreign Currency