March 2021 Forward price = $41.00/barrel Strike Call price/barrel Strike Put price/barrel 35 $ 7.00 35 $ 2.00 40 4.50 40 3.25 45 1.50 45 5.00 A) If the spot market price of oil in March 2021 turns out to be $48.00 per barrel, which of the following strategies that E&P could put in place would have resulted in the best outcome (highest net price per barrel, including the costs or benefits of the hedge)? Unhedged (receive the spot price of $48 in March 2021) Forward Sale at $41/barrel Sell Calls with strike price of $45 Buy Puts with strike price of $35 Collar: Sell Calls with strikes of $40, buy puts with strike of $35