b) What is the refiner's net price paid for oil as a result of this hedge? (show your work) (1 point) c) What would have been the net price if the refiner had not hedged? (1 point) 1) What would have been the net price if the refiner had bought spot oil in November and stored it until May? Assume that carrying costs are zero. (1 point) e) Is the refiner "long the basis" or "short the basis"? Why? (2 points) How much did the refiner actually gain or lose on this hedge? Show how you calculated this answer. What is this amount equal to? What else is this amount equal to? [Note: There are 3 ways to get the same answer - show all of them.] (3 points) g) The refiner had three choices in November: do nothing and take the spot market price in May; buy spot oil in November and store it until May; or hedge with futures. Which strategy turned out to be the best? Which strategy turned out to be the worst? Explain why hedging was or was not a good idea in this particular situation. (3 points)