11. Exxon Mobile is worried that the price of oil is going to decline faster and more than the market currently expects. They are going to bring 10mm (million) barrels of oil to market at the end of each quarter for the next 4 quarters. They want to hedge half it now on January 1 . The March futures price is trading at $100, the June price at $80, the September price at $70 and the December price at $65. The WTI contract specification is for 5,000 barrels. CME group, who takes the other side of the contract, requires an escrow deposit called the margin. The margin is a percentage of the notional exposure. Notional exposure = futures price x contract specification x margin % Since Exxon Mobile is a large institution with high credit quality, the CME group is willing to provide favorable margin terms of 5% required to open each position. How much cash does Exxon need to deposit in an escrow account with CME group to open this position today? 12. Considering only the March contracts, show the payoff for Exxon if the spot price settles at A) $150,B)$100, and C) $50