You observe the following quotations of currency options on Euro. They are European put options expiring in six months. Contract size is $10,000.$

Strike rate Premium $($per $)$

Put Option #$1$ US$$1\mathrm{.}06/$ US$$0\mathrm{.}042$

Put Option #$2$ US$$1\mathrm{.}04/$ US$$0\mathrm{.}033$ b$.$ Suppose you operate a US firm selling electronic components to customers in Germany. Your firm will be receiving $10,000$ from a customer in six months. You would like to hedge against the depreciation of $$ by buying one of the above two put options. Plot and compare the net hedged US$ cash flows by using Option #$1$ vs$.$ Option #$2$ as a function of the spot exchange rate to be realized in six months $($make sure to account for the option prices paid upfront in arriving at the net cash flows$).$