Suppose that the exchange rate is $\backslash (1\mathrm{.}25=1\mathrm{.}00\backslash ).$ Options $($calls and puts$)$ are available on the London exchange with strike prices $\backslash (0\mathrm{.}80=1\mathrm{.}00\backslash ).$ Options $($calls and puts$)$ are available on the Frankfurt exchange with strike prices of $\backslash (1\mathrm{.}25=1\mathrm{.}00\backslash ).$ Hedge ratios are $\backslash (1\mathrm{.}00\backslash )$ for call options and $\backslash (-1\mathrm{.}00\backslash )$ for put options. For a U$.$K$.$ firm to hedge a $\backslash (100,000\backslash )$ receivable, Buy a put option on $142,857$ euros with a strike price in pounds sterling. Buy a put option on $111,111$ euros with a strike price in pounds sterling. Buy a put option on $100,000$ euros with a strike price in pounds sterling. Buy a put option on $125,000$ euros with a strike price in pounds sterling.