Love it! I think you are showing it correctly. Maybe there was a velvet/fabric (reversible) tie that went into those two holes - that would form a bow??? I have a Lilli Ann '40's jacket that has a very versatile collar:
And I think you can even wear it open - but I don't have a photo of it like that.
And I think you can even wear it open - but I don't have a photo of it like that.