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1. Consider a speculator in a long oil futures contract that controls 1000 barrels of oil. If the speculator signs 12 long positions when the

1. Consider a speculator in a long oil futures contract that controls 1000 barrels of oil. If the speculator signs 12 long positions when the price of oil is 67.7, and the price of oil changes to 36.6, how much money has the speculator made or lost?

2. A company with a WACC of 10% is considering investing in new projects. Which of the following projects should the company accept?

a.Project with IRR of 10%.

b. Project with an IRR of 9%.

c. Project with an IRR of 12%.

d. Project with IRR of 11%

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