The CEO wants to manage the risk of copper price. Please compare all the possible hedging strategies and draw their diagrams(in excel or other)

Note: You may want to make relevant assumptions on the timing of the cash flows (from equipment costs, employee salaries and others). Remember to consider tax payments when managing Coppo's profit

Thank you very much

Coppo is a copper mining firm. The output one year later is expected to be 1,000,000 lb Coppo has just purchased a new equipment to facilitate the copper mining. The mining machine costs Coppo $520,000. One year later, the machine will become obsolete and will be sold out as rubbish for only $20,000. Coppo has made some new hires to mine coppers. The cost of human capital is $0.40/ lb. The tax rate is 30% for Coppo, The 1-year continuously compounded interest rate is 6%. 1-year forward price is $1.00/b. 1-year option prices for copper are shown in the table below. All products allow for physical delivery of copper, so that Coppo's tax can be considered for the total profit after hedging Call $0.0649 $0.0500 $0.0376 $0.0274 S0.0194 Strike Price ($/ Ib) 0.950 0.975 1.000 1.025 1.050 Put S0.0178 S0.0265 $0.0376 $0.0509 $0.0665 Coppo is a copper mining firm. The output one year later is expected to be 1,000,000 lb Coppo has just purchased a new equipment to facilitate the copper mining. The mining machine costs Coppo $520,000. One year later, the machine will become obsolete and will be sold out as rubbish for only $20,000. Coppo has made some new hires to mine coppers. The cost of human capital is $0.40/ lb. The tax rate is 30% for Coppo, The 1-year continuously compounded interest rate is 6%. 1-year forward price is $1.00/b. 1-year option prices for copper are shown in the table below. All products allow for physical delivery of copper, so that Coppo's tax can be considered for the total profit after hedging Call $0.0649 $0.0500 $0.0376 $0.0274 S0.0194 Strike Price ($/ Ib) 0.950 0.975 1.000 1.025 1.050 Put S0.0178 S0.0265 $0.0376 $0.0509 $0.0665