Set up two delta neutral (or close) hedges with a long call and a short put to protect against rising prices on this commodity. Discuss the gamma on each of your collars you have structured and explain the impact. Note the net cost of each hedge note where the at-the-money strike is.

Set up two delta neutral (or close) hedges with a long call and a short put to protect against rising prices on this commodity. Discuss the gamma on each of your collars you have structured and explain the impact. Note the net cost of each hedge note where the at-the-money strike is. Set up two delta neutral (or close) hedges with a long call and a short put to protect against rising prices on this commodity. Discuss the gamma on each of your collars you have structured and explain the impact. Note the net cost of each hedge note where the at-the-money strike is