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It is January 15. a company knows it will require 100,000 barrels of oil on May 15. the spot price of oil is $75.00 per

It is January 15. a company knows it will require 100,000 barrels of oil on May 15. the spot price of oil is $75.00 per barrel and the May futures price is $78.50 per barrel. each contract is for the delivery of 1,000 barrels of oil. if it hedges.

How much profit does it make on its futures position if the May 15 spot price turns out to be $80.00?

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