Indiana Co. expects toe receive EUR 5 million in 1 year from exports, and it wants to consider hedging its exchange rate risk. The spot rate of the EUR as of today is USD 1.10 (S_0^USD/EUR = USD/EUR 1.10). Interest rate parity exists. Indiana Co. uses the forward rate as predictor of future spot rate. The annual interest rate in USD is 8 percent versus an annual interest rate of 5 percent in EUR. Put options on EURs are available with an exercise price of USD/EUR 1.11, an expiration date of 1 year from today, and a premium of USD/EUR 0.06 per unit of coverage. Estimate the USD 1-year cash flow that Indiana Co. will receive as a result of using each of the following strategies. (a) Money Market Hedge (Specify the strategy and the cash flows associated to the money market). (b) Put Option Hedge (c) Unhedged strategy (d) Which hedge is optimal