1) On March 1 the spot price of crude oil is $94.78 and the July crude oil futures price is $92.02. (All prices are per barrel.) On June 1 the spot price of oil is $95.65 and the July crude oil futures price is $97.18. A refinery entered into long position in crude oil futures contracts on March 1 to hedge the purchase of oil on June 1. It closed out its futures position on June 1. What is theeffective price per barrelpaid by the company for the oil? Assume that the company completely hedges its price risk and only faces delivery month basis risk. Ignore brokerage fees and other transactions costs.

Do not round values at intermediate steps in your calculations. Enter your answer in dollars and cents,rounded to the nearest penny. Do not type dollar signs or commas. For example, type $1,234.56 as 1234.56