Caster Oil expects to run production so that it could deliver 1,000,000 barrels of oil next month. The current spot price of oil is $100 per barrel, but Caster Oil fears that the spot price of oil could decline to $90 per barrel next month due to concerns of a recession. Assume that in the oil futures market, the oil futures contract for next month delivery is $99 per barrel, where the contract size is 100,000 barrels.

If Caster Oil does not hedge and the spot price of oil falls to $90 per barrel, what is Caster Oils expected revenue?

What futures position should Caster Oil take to hedge next months expected oil production revenue?

Assuming the futures position from b is taken, what will be Caster Oils next months expected oil production revenue PLUS futures profit/loss if the next month futures price and spot price of oil end at $90/barrel?

Assuming the futures position from b is taken, what will be Caster Oils next months expected oil production revenue PLUS futures profit/loss if the next month futures price and spot price of oil end at $100/barrel?