4) Motion, Inc. a U.S. apparel design firm, owes Mexican Peso 10 million in 30 days in return for shipment of textiles from Mexico. Motions treasurer is considering using a currency collar (or range forward) to hedge the companys peso exposure on this shipment. Motion faces calls its bank and receives the following quotes on over-the-counter currency options:

30-day call option on Pesos with strike of $0.0470/peso $0.0008/peso

30-day put option on Pesos with strike of $0.0463/peso $0.0023/peso

How can Motion construct a currency collar to hedge its payable risk? What is the net premium paid for this collar? What is the net US dollar cost of the Peso 10 million using this currency collar if the future spot exchange rate in 30 days is Peso 21.2/$? If the future spot rate is Peso 21.8/$?