1. Suppose the 1-yr forward price of a barrel of oil is $20 and current oil price is $19. The cost of carry equals $20.9. How to make money without risk if you have a barrel of oil? (10 pts.) Today One year from today (t+1) a. You buy and store a barrel of oil at __ a. You deliver a barrel of oil Or a. You sell a barrel of oil at - a. You bank account is b. You buy a forward contract at $_ b.You buy a barrel of oil at Or or b. You sell a forward contract at $__ b.You sell a barrel of oil at $ CASH FLOWs at t+1 You payoff your debt and storage fee $ Or Your bank account is $_ Negative cash flows of buying a barrel of oil is Or Positive cash flows of selling a barrel of oil is Your own money invests in this project $_0_ Your profit_$ 1. Suppose the 1-yr forward price of a barrel of oil is $20 and current oil price is $19. The cost of carry equals $20.9. How to make money without risk if you have a barrel of oil? (10 pts.) Today One year from today (t+1) a. You buy and store a barrel of oil at __ a. You deliver a barrel of oil Or a. You sell a barrel of oil at - a. You bank account is b. You buy a forward contract at $_ b.You buy a barrel of oil at Or or b. You sell a forward contract at $__ b.You sell a barrel of oil at $ CASH FLOWs at t+1 You payoff your debt and storage fee $ Or Your bank account is $_ Negative cash flows of buying a barrel of oil is Or Positive cash flows of selling a barrel of oil is Your own money invests in this project $_0_ Your profit_$