1. Assume today is 31st January 2013. Razak is the crude palm oil refiner who has a monthly requirement of 10,500 tonnes of crude palm oil for the manufacture of domestic cooking oil. There is a possibility that in the coming months the price of crude palm oil will increase. He decides to enter into the CPO futures market to protect his position over the next three months until 15th May 2013. He normally takes delivery of the product on the 15th of each month. The settlement price (RM/tonne) on various dates is given as follows: Contract 31 Jan 15 Feb 15 Mar 15 Apr 15 May Feb 15 3,738 3,741 Mar 15 3,735 3,739 3,745 Apr 15 3,742 3,745 3,747 3,751 May 15 3,745 3,747 3,749 3,753 3,756 Spot price 3,735 3,740 3,750 3,752 3,755 Determine the results by calculating the total profit/loss and effective price (RM/tonne) of his crude palm oil. (15 marks)