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24. KCB, Corp. wants to set up a hedge on its expected October sale of 800,000 barrels of crude oil. The current spot price for
24. KCB, Corp. wants to set up a hedge on its expected October sale of 800,000 barrels of crude oil. The current spot price for crude oil is 51.55. The current November crude oil futures price is 51.08. a. What is the basis today? b. If the October spot price is 51.10 and the November futures price is 50.72. What would be KCB's profit on its futures position? C. And what is the effective price per barrel KCB would get for its crude oil? d. Suppose instead that the October spot price is 51.95 and the November futures price is 51.71. What is the effective price per barrel KCB would get for its crude oil
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