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Gulf Exploration Inc plans to sell 500 barrels of crude oil in July. The spot price of crude is currently $102.67 /barrel.Crude Oil futures are

Gulf Exploration Inc plans to sell 500 barrels of crude oil in July. The spot price of crude is currently $102.67 /barrel.Crude Oil futures are defined as 500b, $/b. August crude is quoted at 102.37. To fully hedge its position Gulf Exploration should

buy or sell

How many contracts?

The basis is $

A textbook Hedge will lock in an effective price of $

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