Consider a firm that relies on corn as a material input to its operations. The manager wants to offset the cost of his other hedging strategies by writing a put option with a strike price of 300 cents per bushel. Which of the following qualitatively describes his position: O He must pay a premium upfront, which gives him the right to sell the underlying security for 300 cents per bushe He must pay a premium upfront, which gives him the right to buy the underlying security for 300 cents per bushel. He will receive a premium upfront. Later he may be obligated to sell the underlying security for 300 cents per bushel. O He will receive a premium upfront. Later, he may be obligated to buy the underlying security for 300 cents per bushel