Use the NYMEX Calls and Puts on Crude Oil Handout that are provided as a handout with this exam. Chesapeake Energy is constructing a collar hedge to lock in a price they receive for the crude oil that they sell. They want this floor price to be $65.00 per barrel on the contract. Is it possible for Chesapeake to construct a zero cost collar where the premiums offset each other? No it is not possible. Yes it is possible. What is a costless collar? Prior Settle" is the option premium. The strike price is shown as in Ch.16 with the decimal left out. Place a decimal in the middle to have $/barrel (i.e. the first strike place is 55.50). All $ values in the table are per barrel. CALL AND PUT OPTIONS FOR CRUDE OIL ON MAY 4, 2018 THE SPOT PRICE FOR CRUDE OIL ON THIS DAY WAS $69.78 PER BARREL CALL OPTIONS Volume Prior Settle PUT OPTIONS Phor Price Settle Volume Updated 14:47:14 0 12.93 5560 0.01 60 CT 0 12.43 5600 0.01 S 85 4-May-18 15:20:21 CT 0 11.94 5650 0.01 87 LM 0 11.44 5700 0.01 390 25 4-May-18 14:47:14 CT 4-May-18 14:47:14 98 4-May-18 14:47:14 56 10.94 5750 0.02 348 CT 4-May-18 14:48:47 13 10.45 5800 0.02 170 CT 4-May-18 14:47:14 11 9.95 5850 0.03 473 CT 4-May-18 14:51:30 2 9.46 5900 0.03 335 CT 4-May-18 15:02:41 0 8.96 5050 0,04 1,007 CT 4-May-18 14:59:12 41 8.47 6000 0.05 1,341 CT 0 7.98 6050 0.05 1,447 2 7.49 6100 0.06 866 CT 0 7 6150 0.08 851 0 652 6200 0.09 1,288 25 35 55 4-May-18 14:53:43 CT 4-May-18 14:47:14 4-May-18 151421 0 6.03 6250 0.11 768 4-May-18 15:12:05 4-May-10 15:12:13 CT 4-May-18 14:59 00 77 5.55 6300 0.15 1,051 CT 4-May-15 15:12:22 4-May-18 0 508 6350 0.15 1,375 14:59:12 4.61 6400 0.19 1,629 4-May-18 3 4.16 6450 0.23 1,709 CT 14:54:55 4-May-18 15:19-22 100 3.71 6500 0.28 8,847 CT 4-May-18 14:47:14 10 3.28 6550 0.35 1.110 CT 4-May-18 14:52:58 82 2.87 6600 0.44 3,224 CT 4-May-18 14:47:14 34 2.48 6650 0.56 1,854 CT 4-May-18 15:14:11 514 2.13 6700 0.7 3,744 CT 4-May-18 15:20:21 128 1.8 6750 0.87 1,662 CT 4-May-18 14:48:35 727 1.51 6800 1.08 3,159 CT 4-May-18 543 1.25 6850 1.32 832 1,283 1.02 6900 1.59 2,113 658 0.83 6950 1.9 272 4,806 0.67 7000 2.24 958 795 0.54 7050 261 52 20 CT 1953595535 14:47:14 CT 4-May-18 14:51:50 CT 4-May-18 152024 CT 4-May-18 14:55:21 4-May-18 14:59:09 1,348 0.43 7100 3 17 4-May-18 14:47:14 4-May-18 14:47:14 994 0.35 7150 3.41 5 CT 4-May-15 14:47:14 3.976 0.28 7200 3.84 3 CT 4-May-18 14:47:14 1,837 0.22 7250 4.29 CT 2,417 0.18 7300 475 4 4-May-18 15:17:47 CT 4-May-18 18:45.00 366 0.15 7350 5.78 0 3-May-15 14:47:14 1,858 0.12 7400 5.69 0 CT 4-May-18 750 20 0.1 7450 6.17 0 14:47:14 CT 3,398 0.09 7500 6.65 CT 4-May-18 14:47:14 4-May-18) 14:47:14 4-May-18 14:47:14 4-May-18 14:47:14 4-May-18 14:47:14 80 0.07 7550 7.14 0: CT 396 0.06 7600 7.63 0 101 0.05 7650 8.12 0 CT 607 0.04 7700 861 0 CT 4-May-18 14:47:14 253 0.04 7750 9.1 CT 4-May-18 1,388 0.03 7800 10.09 16:45:00 CT 3-May-18 14:47:14 23 0.03 7850 10.09 0 20 230 0.02 7900 10.59 7 96.96 CT 4-May-18 14:47:14 CT 724 0.02 7950 11.09 9 1.529 0.02 8000 11.58 10 25 4-May-18 14:47:14 CT 4-May-18 14:47:14 CT 4-May-18 14:47:14 3 0.02 8050 12.08 0 CT 87 405 0.01 8100 12.58 0 22 22 0.01 8150 13.06 0 1 0.01 8200 13.58 0 1 0.01 8250 14.07 125 0.01 8300 14.57 397 0.01 8350 1555 34 0.01 8400 1557 4-May-18 14:47:14 CT 4-May-18 14:47:14 CT 4-May-18 97 14:47:14 CT 0 O O 4-May-18 14:47:14 CT 4-May-18 14:47:14 CT 4-May-18 16:45:00 CT 3-May-18 14:47:14 CT 4-May-18