An oil company hedges its future all sales by entering into a stack and roll trading strategy to long oil from Jan 2020. The company uses futures contracts expiring within half a year and having liquidity to trade. The table below lists the three futures contracts that he uses, Futures price is quoted for one barrel of oil. The company closes its last contract pouition in July 2020 a) What is the dollargain/los per barrel of oil from this stack-and-roll strategy? (2 marks) w Does the company face basis risk? Why? (2 marks) How did the company close its position in July 2020? (1 mark) An oil company hedges its future all sales by entering into a stack and roll trading strategy to long oil from Jan 2020. The company uses futures contracts expiring within half a year and having liquidity to trade. The table below lists the three futures contracts that he uses, Futures price is quoted for one barrel of oil. The company closes its last contract pouition in July 2020 a) What is the dollargain/los per barrel of oil from this stack-and-roll strategy? (2 marks) w Does the company face basis risk? Why? (2 marks) How did the company close its position in July 2020? (1 mark)