1FNCE5101 Applied Corporate Finance March 29, 2023 Worksheet: Collar Strategy A) Originally: applied to protect stock investment Long position in stock Buy a put Sell a call Combining these three into one collar B) Expanded into risk management in the Air Canada case: Fuel price Risk profile: fuel expenses to fuel price buy a call sell a put Combining these three into one collar Stock Price stock Stock Price stock Fuel Price stock Fuel Price stock Fuel Price stock