1. It is January 31^st. The spot price of crude oil is $42 a barrel and the September Crude Oil futures contract is trading at $45. Each futures contract covers 1,000 barrels of Crude Oil. A futures speculator enters a long futures position with 1 contract of September Crude Oil futures. 3 months later, both the spot and futures prices have changed, and the trader decides to unwind her position early. Which answer below shows a correct profit/loss outcome? Show calculation.

1. Scenario #1: Crude Oil futures price rises to $50 and Spot price rises to $46. Profit = $5,000
2. Scenario #1: Crude Oil futures price rises to $50 and Spot price rises to $46. Loss = $1,000
3. Scenario #2: Crude Oil futures price falls to $41 and Spot price falls to $39. Loss = $6,000
4. Scenario #2: Crude Oil futures price falls to $41 and Spot price falls to $39. Profit = $4,000