Mogul oil refinery is planning to buy $8000$

barrels of oll in $9$ months. Suppose Mogul

hedges the risk by buying futures on $5600\mathrm{.}0$

barrels of oll. The curient oll futures price is

$$17\mathrm{.}6$ dollars per barrel $4$ in $9$ months the spot

price of olll is $$16\mathrm{.}5$ and the futures price

is $$16\mathrm{.}5$ per barre, what is Mogulis effective

cost per bares?

$16\mathrm{.}54$

$1763$

$16\mathrm{.}65$

$1523$

$172$