The oil hedges that will ensure the price of a barrel of oil exports in 2015 cost 773 million dollars, a price much higher than the 543 million MXN pesos paid for this year, and will be supplemented with resources from the Budget Revenue Stabilization Fund (FEIP). The Ministry of Finance announced in 2014 the contracting of oil hedges for the next year, with which it covered the estimated price per barrel of 79 dollars, established in the 2015 Revenue Law.

The hedges ensure a price of 76.4 dollars per barrel, and the remaining 2.6 dollars will be covered by the FEIP, previously called the Oil Revenue Stabilization Fund. Put-type sales options were acquired at an average exercise price of the Mexican export mix of 76.4 dollars per barrel. On the other hand, to cover the difference of 2.6 dollars established in the Revenue Law for 2015, a subaccount was created in the Oil Revenue Stabilization Fund called 'Coverage Complement 2015', with 7 thousand 944 million pesos.

The total resources of the FEIP as of September 30 were 33.7 billion. The government would exercise the options if the average price of oil is below 76.4 dollars. The oil hedges cover production of 228 million barrels, the highest figure since this type of operation was carried out.

In 2014, the number of covered barrels was 215 million; in 2013, 217 million; and in 2012, 211 million.

The official explained that for the acquisition of oil hedges, 43 operations were carried out in the international derivatives markets with 7 counterparties, whose names he declined to mention.

In November 2014, the Mexican Government bought a put option (sale) to secure the sale price of 228 million barrels of oil at 76.4 US$/barrel, during the year 2015. The premium paid was US$773 million.

a) Obtain the curve of the benefit based on the cost of the underlying, considering the points of view of the buyer and the seller.

b) Assuming that the option purchased is an American type, explain how the Mexican Government fared if in 2015 the price of oil was US$60/barrel. Also, explain what happened to the bank that sold the option.