1. You want to enter into an agreement to physically sell WTI crude oil at a set price of $60.00 per barrel today for delivery in 12 months. You want the agreement to be for 400,000 barrels of oil and you are worried about counter party risk. Would you be most likely to use a futures contract or a forward contract? Explain your answer. (5 points) 2. You are bullish on WTI so you are long 100 WTI contracts and also short 100 Brent contracts. The closing price yesterday for WTI was $50 and the closing price today is $51. The closing price yesterday for Brent was $49 and the closing price today is $53. What is your new mark to market P&L on this trade? (5 points)