You operate a US firm sourcing electronic components produced in Germany. Your firm will be paying 200,000 to a supplier in Germany in six months. You would like to hedge against the appreciation of Euro using a currency collar (i.e., combination of one call option and one put option). In order to maintain a sufficient level of working capital, you would like to make sure you will at most be paying (including the upfront hedging cost) US$236,000 in settling this Euro payment. At the same time, you would also like to benefit as Euro depreciates in paying as little US$ cash flow as possible. You observe the following quotations of currency options on Euro. They are European options expiring in six months. Premium (per ) Strike rate Bid Ask Call option on US$1.17/ US$0.0500 US$0.0505 Call option on US$1.16/ US$0.0525 US$0.0530 Put option on US$1.15/ US$0.0365 US$0.0370 Put option on US$1.14/ US$0.0335 US$0.0340 Given the above currency options, how will you set up your currency collar to best satisfy your objectives? What are the maximum and minimum hedged cash flows (in US$) by using the currency collar? Note: With two call and two put options to choose from, you can construct altogether four different currency collars. Choose the one that best satisfies your objectives. Explain your choice.