5. It is October 16.2018 and a company knows that it will need to purchase 10,000 barrels of crude oil@stsome time in January or February 20.19. Oil futures contracts are currently traded for delivery every month on the NYMEX division of the CME Group and the contract size is 1,000 barrels. Thd futures price on October 16 is $80.00 per barrel. The company finds that it is ready to purchase the crude oil on 28 February 2019. The spot price and futures price on February 28 are $85.00 per barrel and $$.50 per barrel. Calculate the total price to be paid by the company for purchase of oil using hedging strategy