Sun Pharma Ltd$.$ owes $100$ million USD to Glaxo Ltd$.$ one year from now.

Spot rate: $$1=81\mathrm{.}24/81\mathrm{.}44$

$1$ year forward rate $$1=84\mathrm{.}12/84\mathrm{.}60$

$1$ year USD interest rate $4\mathrm{.}5\%\%-5\mathrm{.}0\%$

$1$ year Indian Rupee interest rate $7\mathrm{.}0\%-8\mathrm{.}0\%$

$1$ year call option at a strike price of $1=84\mathrm{.}6$ is trading at a premium of$1\mathrm{.}8$

$1$ year put option at a strike price of $1=82\mathrm{.}5$ is trading at a premium of $1\mathrm{.}2$

a$.$ What is the hedged value of Sun Pharma Ltd$.$s payables using the forward market hedge and

the money market hedge?

b$.$ How can Sun Pharma Ltd$.$ construct a currency collar?