1. Mexico is an energy exporter, and one of its primary exports is Maya crude oil which is currently selling for USD 55 per barrel for delivery in 6 months. Mexico wishes to ensure that it is able to sell their Maya crude in 6 months for no less than this price. (a) (6 pts) Mexico is examining the tradeoff between the use of puts and forwards to hedge their exposure to Maya crude. In two carefully annotated graphs, illustrate (i) the exposure of Mexico to changes in the price of Maya crude, (ii) the payoff diagram for the hedge instrument (put or forward), and (iii) the net hedged exposure. Your answer to this part consists of 2 graphs - one for the put and one for the forward- and each graph will show 3 sets of lines: unhedged Maya exposure, hedge-instrument (put or forward) payoff, and hedged Maya exposure.