A charterer is worried about Capesize freight rates and would like to hedge his freight revenue for Q3-13 using options. Using the CLS premium matrix below answer the following questions: Explain how the charterer can hedge using the call or put option that is closest to ATM. Draw the payoff profile. If the average freight rate in Q3 is $8,000/day calculate the total payoff from this position when settling at the end of Q3.