For writing the conclusion in the report, how do we tend to choose which would be the appropriate hedging strategy from the derivatives calculated? It can either be from foreign exchange (eg. Money market hedge, Forward contracts,Future contracts and options) or interest rate risk exposures (eg. FRA’s, option on futures and futures).
Do we take the highest for receipts (or borrowals) and lowest for payments (or deposits)?
That is a factor to mention, but there is never a ‘best’ recommendation. The marks are for proving that you understand the various hedging techniques and can write sensibly about the various merits and demerits given the circumstances in the question.