2. A commodity market gets temporarily messed up because of some pandemic. The following table shows current prices of one crude oil barrel in the spot and futures market. Current interest rate is 5%. The storage cost is $1 per barrel per year and there is no convenience yield.

Spot		Futures (matures in 1 year)
Last Price	$50	Last Price	$20
Ask	$52	Ask	$25
Bid	$48	Bid	$15

3. Oil producers think it is too risky to use futures market at this point. Rather, they decide to use a collar position with options. A producer creates a collar with a call option with strike price $60 and a put option with strike price of $10. Draw the payoff at maturity graph of this collar position. (Make sure you show the prices on the graph.)