Mogul oil refinery is planning to buy $8000$ barrels of oil in $9$ months. Suppose Mogul

hedges the risk by buying futures on $5600\mathrm{.}0$ barrels of oil. The current oil futures price is $$17\mathrm{.}6$ dollars per barrel. If in $9$ months the spot price of oil is $$16\mathrm{.}5$ and the futures price is $$16\mathrm{.}5$ per barrel, what is Mogul's effective cost per barrel?

$16\mathrm{.}54$

$17\mathrm{.}62$

$16\mathrm{.}65$

$15\mathrm{.}73$

$17\mathrm{.}27$