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Mogul oil company will sell 2000 barrels of oil in 7 months. Suppose Mogul hedges the risk by selling futures on 2000 barrels of
Mogul oil company will sell 2000 barrels of oil in 7 months. Suppose Mogul hedges the risk by selling futures on 2000 barrels of oil. The current oil futures price is $23.75 dollars per barrel. If in 7 months the spot price of oil is $22.25 and the futures price is $24.55 per barrel, what is Mogul's effective price of oil per barrel? 26.05 23.05 21.45 23.75 22.25
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