San Antonio Importers (SAI for short) is a US based firm that has negotiated a deal to buy Brazilian shoes from a firm in Rio De Janeiro, Brazil. The terms of the deal are as follows: Value of the deal: 950 million Brazilian Reals (BRs). Payment terms (note: payment is to be made in BRs): 0% down payment, with the rest split equally over 90 days and 180 days. Exchange rates: Spot (Bid, Ask): 0.16900.1790 (direct quotes in the US). 90-day Forward Rates: 0.18000.1870 180-day Forward Rates: 0.21000.2200 Borrowing, Lending rates in BR: 15.5%,11.5% [90 days], and 17.75%,15.75%[180 days ] Put and Call Options are available: CALL: Strike price: 0.1790 , option premium =20%, American, expires in 50 days. PUT: Strike price: 0.1790 , option premium =8.25%, American, expires in 200 days. SAI cost of capital: 9.25% Management is wondering on the best hedging method for SAI. Can you help them? San Antonio Importers (SAI for short) is a US based firm that has negotiated a deal to buy Brazilian shoes from a firm in Rio De Janeiro, Brazil. The terms of the deal are as follows: Value of the deal: 950 million Brazilian Reals (BRs). Payment terms (note: payment is to be made in BRs): 0% down payment, with the rest split equally over 90 days and 180 days. Exchange rates: Spot (Bid, Ask): 0.16900.1790 (direct quotes in the US). 90-day Forward Rates: 0.18000.1870 180-day Forward Rates: 0.21000.2200 Borrowing, Lending rates in BR: 15.5%,11.5% [90 days], and 17.75%,15.75%[180 days ] Put and Call Options are available: CALL: Strike price: 0.1790 , option premium =20%, American, expires in 50 days. PUT: Strike price: 0.1790 , option premium =8.25%, American, expires in 200 days. SAI cost of capital: 9.25% Management is wondering on the best hedging method for SAI. Can you help them