Which call and which put did you select

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Lauren Simkins E&P wishes to construct a collar hedging strategy. Lauren Simkins, the CEO, tells you she wants you to construct a hedge to protect the firm from declining crude oil prices for upcoming production. The CEO states that you are to buy a put option that gives crude oil price protection for a minimum of $100 per barrel. She tells you to sell an offsetting call so that your total hedging strategy costs no more than 50 cents total per barrel (i.e., total premium paid on the put minus the premium received on the call is no more than 50 cents net paid per collar). Which call and which put did you select? Pick the best collar. List the collar below and tell the total cost of the collar strategy.

Reference no: EM132354944

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