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Mogul oil company will sell 4000 barrels of oil in 9 months. Suppose Mogul hedges the risk by selling futures on 4000 barrels of oil.

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Mogul oil company will sell 4000 barrels of oil in 9 months. Suppose Mogul hedges the risk by selling futures on 4000 barrels of oil. The current oil futures price is $21.6 dollars per barrel. If in 9 months the spot price of oil is $20.0 and the futures price is $21.0 per barrel, what is Mogul's effective price of oil per barrel? 22.6 19.4 21.6 20.6 20.0

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