San Antonio Importers $($SAI for short$)$ is a US based firm that has entered into a deal to buy Italian shoes from a firm in Palermo, Italy. The terms of the deal are as follows: Value of the deal: $170$ million Euros.

Payment terms $($note: payment is to be made in Euros, unless otherwise stated$)$:

$30\%$ down payment, with the rest split equally over $110$ days and $330$ days.

Exchange rates: Spot $($Bid$,$ Ask$)$: $1\mathrm{.}35541\mathrm{.}3592$

$110-$day Forward Rates: $1\mathrm{.}35761\mathrm{.}3662$

$330-$day Forward Rates: $1\mathrm{.}38151\mathrm{.}3902$

Borrowing, Lending rates in Euros: $11\%,7\%[110$ days$],$ and $14\%,11\%[330$ days$]$

Put and Call Options are available:

CALL: Strike price: $1\mathrm{.}3745,$ option premium $=12\%,$ American, expires in $180$ days.

PUT: Strike price: $1\mathrm{.}3740,$ option premium $=5\%,$ American, expires in $180$ days.

SAI cost of capital: $17\%$

Management is wondering on the best hedging method for SAI. Can you help them?