Study the Costless Collar Graph above and answer the following questions:

Describe the "Put" portion of the Hedge? Would you want to use this as a buyer or seller?

Describe the "Call" portion of the Hedge? Would you want to use this as a buyer or seller?

Why is there no "Premium" in this transaction?

If the NYMEX was at $$9$ what would the price be$?$

If the NYMEX was at $$11$ what would the price be$?$

If the NYMEX was at $$2$ what would the price be$?$