Collars – Int Rate Hedging

Hi Sir,

I am always having a bit of trouble in selecting the ex.prices when hedging using collars.

For Eg: In the Armstrong Group Question when they have asked us to hedge the investment using collars I knew that we are supposed to Buy Call Options and Sell Put Options but I am not too sure which Ex. Price should be placed for the Call Option and which one to the Put Option.

Please explain this section to me sir using both scenarios which are investment and borrowing

Is there a method that would help me to recognize and match the ex price correctly to the option sir