Please see attached file.

Net receipt as on 28th Feb 2021    =    €3.4 – 2.1
                    =    €1.30 million
That net receipt amount is exposed to currency rate risk and needs to be hedged.
(a)
If money market hedge is used
Borrow euro @3.60%, convert into pound and invest in UK market for 3 months
The equivalent borrowed Euro    =    1.30 / (1 + 0.0360/4)
                    =    €1.2884 million
Convert into pound at the spot rate of 1.2188€ / £
Equivalent pound    =    1.2884 / 1.2188
            =    £1.0571 million
Invest this pound in UK market @ 3.40% for 3 months
Amount after 3 months    =    1.0571*(1 + 0.0340 / 4)
                =    £1.0661 million
(b)
If forward contract is used
3-months forward rate would be 1.2188 + 0.0012 i.e. €1.22 / £
The net receipt will be converted at 3-months forward rate of €1.22 / £
The equivalent receipt in pound will be 1.30 / 1.22 i.e. £1.0656 million
(c)
If OTC currency option is used
But...