Evaluating Option Strategies for Hedge Management

XYZ Corporation is a large manufacturing firm exposed to fluctuations in the price of a critical raw material, which is often traded in the options market. The corporate treasurer is considering employing various option strategies to hedge against potential price increases. The current market price of the raw material is $100 per unit, and the treasurer has identified two strategies:

1. **Protective Put Strategy:** Purchase a put option with a strike price of $90, expiring in six months, costing $5 per option. This strategy allows XYZ to limit its downside risk while retaining upside potential.

2. **Bull Call Spread:** Buy a call option with a strike price of $100 for $7 and sell a call option with a strike price of $110 for $3, utilizing the same expiration of six months. This strategy would reduce the net premium paid but limits potential upside gain.

Evaluate both strategies and recommend which option strategy XYZ Corporation should implement based on the company's exposure and risk tolerance. Support your recommendation with a thorough analysis of each strategy's potential outcomes, risks, costs, and suitability given XYZ's manufacturing context.