Your Company Is Planning to Buy Euros in Six Months

Your company is planning to buy euros in six months time.The spot price is $1.25 per euro.Boldman Bankers Inc.(fictitious name) designs a "fancy derivative" that provides protection against an appreciation in the euro,but it also limits your benefits if the euro declines.After six months,by the terms of this "range forward," (1) if the spot exchange rate for the euro is above $1.30,then you pay $1.30; (2) if the spot exchange rate for the euro is below $1.20,then you pay $1.20;and (3) if the spot exchange rate lies between this range,then you buy euros at the prevailing market price.
-Another cousin,who is also studying derivatives at university,said your portfolio must include a long spot position in euros,because you are planning to buy euros.Her breakdown is:

A) long spot,short put with strike price $1.30,and short call with strike price $1.20
B) short spot,long put with strike price $1.30,and short call with strike price $1.20
C) long spot,long put with strike price $1.20,and short call with strike price $1.30
D) short spot,long put with strike price $1.20,and short call with strike price $1.30
E) long spot,long put with strike price $1.30,and long call with strike price $1.20