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Do B and C also Thanks Your utility company will need to buy 115,000 barrels of oil in 10 days' time, and it is worrind
Do B and C also
Your utility company will need to buy 115,000 barrels of oil in 10 days' time, and it is worrind about fuel costs. Suppose you go long 115 oil futures contracts, each for 1,000 barrels of oil, at the current futures price of $130.00 per barrel. Suppose futures prices change each day as follows a. What is the mark-to-market profit or loss (in dollars) that you will have on each date? b. What is your total profit or loss after 10 days? Have you been protected against a rise in oil prices? c. What is the largest cumulative loss you will experience over the 10-day period? In what case might this be a problem? a. What is the mark-to-market profit or loss (in dollars) that you will have on each date? Calculate the mark-to-market profit or loss below: (Round price change to the nearest cent and profit or loss to the nearest dollar.) Thanks
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