1. In a collar strategy, firms simultaneously buy put options and sell call options. The calls and puts have the same maturity and the same premium, but the exercise price of the puts is below that of the calls. Firms can use the premium received from the sale of calls to finance the purchase of puts, so a collar strategy may require no initial cash outlay.

Suppose that a large gold producer, implements the following collar strategy:

1. Long one put with a strike price of $1100 per ounce and short one call with a strike price of $1300.
2. Long one put with a strike price of $1100 and short 0.5 calls with a strike price of $1200.

For each of the strategy, draw a diagram showing how the sales revenue received per ounce of gold sold varies with the price of gold when the options strategy is implemented (i.e., show the diagram by combining a long gold position with the collar).