69.

Suppose that the exchange rate is 1.25 = 1.00. Options (calls and puts) are available on the London exchange in units of 10,000 with strike prices of 0.80 = 1.00. Options (calls and puts) are available on the Frankfurt exchange in units of 10,000 with strike prices of 1.25 = 1.00. For a U.K. firm to hedge a 100,000 payable, PLEASE SHOW STEP BY STEP

A.	buy 10 call options on the euro with a strike in pounds sterling.

B.	buy 8 put options on the pound with a strike in euro.

C.	sell 10 call options on the euro with a strike in pounds sterling.

D.	sell 8 put options on the pound with a strike in euro.

E.	both a and b

F.	both c and d