Trerec Co is privately owned il drilling and refinery company wirth a significant amount of debt.Most of the company come from the financially stable refinery unit of the business.With only the assets in place, the company is very likely to avoid distress at least for thnext $12$ months.The company is considering a new positive $-$NPV oil drilling project.Because of the prices the project is very risky.At any oil price aboue $$115,$ the project would add value to the company.However,if oil prices fall below $$95$ the losses could push the entire business into financial distress.Assume the risk$-$free interest rate is $0$ percent.the following strategies would allow the firm to pursue the NPV project while hedging the oil price risk?