Company treasurer think that option strategies need to be developed due to future foreign currency transactions that will occur when their contract with an Italian high-tech firm is finalized. The treasurer first need you to construct a memo on various hedging strategies including a bull spread, a butterfly spread, and a ratio spread. To enhance the discussion, use your resources to find existing securities that could be used for one of the hedges. Qualitatively describe your hedging strategy and give a brief explanation of the pros and cons of your individual hedge.