A logistics company has contracted to ship chemicals to military suppliers.The logistics company will pay for high quality shipping from the factories to its warehouse, and then will receive revenue for its high quality shipping from its warehouse to the suppliers.However, any change up or down in the demand of the military products will offset both costs and revenues and create financial loss to the company.

The logistics company would like a financial hedge that will earn money if the stock of military suppliers goes either up or down, believing that would correspond changes in demand for the products.The logistics company understands this necessarily means they would lose money on the hedge if there was no substantial change either up or down in the stock prices of the military suppliers.

What options hedging strategy is the best fit for this logistics firm?

A. Long Straddle

B. No Cost Collar

C. Protective Put