$$Inter Globe Aviation Limited Managing its Euro payable exposure

$$Inter Globe Aviation Limited placed an order to buy $100$ aircrafts from Airbus Industries Limited. The payment will be made in instalments of which $500$ million Euros is payable one year from now.

$$Spot rate: $1=70\mathrm{.}95/70\mathrm{.}98$

$1$ year forward rate: $1=74\mathrm{.}43/74\mathrm{.}50$

$1$ year future rate: $1=74\mathrm{.}25/74\mathrm{.}45$

$1$ year Euro interest rate: $0\mathrm{.}5\%-1\%$

$1$ year Indian Rupee interest rate: $6\mathrm{.}5\%-7\mathrm{.}5\%$

$1$ year call option at a strike price of $1=74\mathrm{.}50$ is trading at a premium of $1\mathrm{.}5$

$1$ year put option at a strike price of $1=72\mathrm{.}50$ is trading at a premium of $0\mathrm{.}8$

$$What is the hedged value of Inter Globe Aviation Limited$$s payables using the forward market hedge and the money market hedge?

$$What is the hedged value of Inter Globe Aviation Limited$$s payables using the future contract?

$$What alternatives are available to Inter Globe Aviation Limited to use currency options to hedge its payables? Which option hedging strategy would you recommend?

$$At what exchange rate is the cost of the option is just equal to the cost of the forward market hedge?

$$How can Inter Globe Aviation Limited construct a currency collar?

$$Assuming a neutral zone of $68-74/$ and a base rate of $71/,$ show in detail how the two$$ companies can share the risk. Also show the effects if the spot rate after $1$ year move beyond the upper and lower boundaries of the neutral zone $($say $66$ and $76).$

Which of the hedging alternatives analyzed above would you recommend to Inter Globe Aviation Limited? Why?$$