Module 8 - Hedging Assignment Study the Costless Collar Graph above and answer the following questions: 1. Describe the "Put" portion of the Hedge? Would you want to use this as a buyer or seller? 2. Describe the "Call" portion of the Hedge? Would you want to use this as a buyer or seller? 3. Why is there no "Premium" in this transaction? 4. If the NYMEX was at $9 what would the price be? 5. If the NYMEX was at $11 what would the price be? 6. If the NYMEX was at $2 what would the price be? 7. If the NYMEX was at $4.50 what would the price be? 8. Why would a company want to engage in this type of transaction? This assignment will be worth 15 Points Place the written submittal the Assignment Submission Area. Module 8 - Hedging Assignment Study the Costless Collar Graph above and answer the following questions: 1. Describe the "Put" portion of the Hedge? Would you want to use this as a buyer or seller? 2. Describe the "Call" portion of the Hedge? Would you want to use this as a buyer or seller? 3. Why is there no "Premium" in this transaction? 4. If the NYMEX was at $9 what would the price be? 5. If the NYMEX was at $11 what would the price be? 6. If the NYMEX was at $2 what would the price be? 7. If the NYMEX was at $4.50 what would the price be? 8. Why would a company want to engage in this type of transaction? This assignment will be worth 15 Points Place the written submittal the Assignment Submission Area