puts) are available on the Frankfurt exchange with strike prices of 1.25=1.00. Hedge ratios are 0.70 for call options and 0.70 for put options. For a U. firm to hedge a 100,000 payable, Buy a call option on 142,857 euros with a strike price in pounds sterling. Buy a call option on 125,000 euros with a strike price in pounds sterling. Buy a call option on 100,000 euros with a strike price in pounds sterling. Buy a call option on 111,111 euros with a strike price in pounds sterling