In three months from now HBC Canada is expecting to pay 2 million Thai Bhat for the purchase of clothes. HBC also just sold goods worth of 1 million Thai Bhat for which payment has to be received in one year, and also purchased some semi-finished goods invoiced at C$1 Million to be paid in three months. Call options with appropriate maturity and put options with appropriate maturity are available with an exercise price of Bhat 8.1/C$ .

A. HBC should take a long position on a Call Option to hedge Bhat 2 Million payables and long position on a Put Option to hedge Bhat 1 million receivables, and leave C$1 Million payables unhedged.

B. HBC should take a long position on a Put Option to hedge Bhat 2 Million payables and long position on a Call Option to hedge Bhat 1 million receivable, and leave C$1 Million payables unhedged.

C. HBC should take a long position on a Call Option to hedge Bhat 1 million. No need for other hedging positions.

D. None of the given answers