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A European company will receive from an American customer USD 1 million in 1 year, and it is considering the use of options to build

A European company will receive from an American customer USD 1 million in 1 year, and it is considering the use of options to build a perfect hedge. A single put option contract on $10,000 has a strike price of 1 EUR per USD. The exchange rate 1 year from now can only be either 0.95 /$ or 1.2 /$. How many put options does the company have to buy?

A) 20 B) 100 C) 250 D) 500

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