Need the excel file named "September Oil Futures" in attaches.

1. 1)For this question, refer to the first tab, "Price History", which lists a fictitious set of prices for Jan '18 oil futures during the month of September. Recall that oil futures quotes are the per-barrel price, and one futures contract is to buy or sell 1,000 barrels of oil. The initial margin for a contract initiated on 9/1 is $6,000. The maintenance margin is 7.5% of current exposure. On October 2, you need to sell 100,000 barrels of oil. You decide to hedge this risk by taking a futures position that you will close out after settlement on 9/29. Assume that on 10/2 you can sell the oil for the spot settlement price from 9/29.
2. a)In order to hedge your oil exposure, should you take a long or short futures position?
3. b)Suppose you order 100 futures contracts of the type specified in part (a). Assume that you
4. purchase them after close on 9/1 at the settlement price and close them out after settlement on 9/29. Make a list of the date and amount of all margin calls that occur over the month. Assume that you can make all of the margin calls.
5. c)On the first day of the contract, you can calculate a threshold price, where if the futures price passes that threshold a margin call will be required. What is that price?
6. d)Assuming you can make all of your margin calls, what is the total profit or loss made from the futures contracts?
7. e)Suppose instead that after the payment of the initial margin, you did not have the liquidity to make margin calls. Instead, the clearinghouse closes out the minimum number of contracts required to keep your account active. How many contracts would you have at the end of the month?
8. f)Based on the situation outlined in part (e), what is the profit or loss from the futures strategy?
9. g)The firm could have avoided losing the contracts by setting aside money for margin calls at initiation. What is the minimum amount that would need to have been set aside, given this set of price movements, and what would be the de facto leverage of such a strategy?
10. h)What is the minimum amount that would need to be set aside to guarantee the ability to make margin calls for any set of price movements?
11. i)Based on the optimal hedge ratio, what is the actual number of contracts you should take?
12. 2)For this question, refer to the second tab named "Order Book." It contains data from a fictitious order book, which is the list of orders a clearing house has that are waiting for execution. This includes whether an order is long or short, market or limit, the limit price if applicable, and the number of shares desired. A clearing house determines a price that maximizes the number of shares that will trade. This example is designed so that the clearing price has no partial or ambiguous fulfillment.
13. a)Find the range of prices that will clear the maximum volume of shares and the number of shares that clear at this price.
14. b)After a market clears, the bid price is the highest price of any long bid still open. The ask price is the lowest of all the short bids still open. What are the bid and ask prices?

3) For this question, refer to the third tab, "Trader Activity." Suppose that 9/1 is the first day of trading for this particular contract so that there was no open interest on 8/31. This table lists the members of a hypothetical clearing house and their trading activity. The ten traders are identified in the first column, with other columns representing a day's worth of trading. Find the volume and open interest at the end of 9/13.

Date Spot Future 9/1/2017 58.33 59.61 9/5/2017 58.61 60.03 9/6/2017 59.8 62.2 9/7/2017 57.92 59.92 9/8/2017 59.74 62.23 9/11/2017 62.14 63.48 9/12/2017 58.74 60.61 9/13/2017 58.87 61.52 9/14/2017 57.59 58.94 9/15/2017 55.85 57.38 9/18/2017 56.64 58.18 9/19/2017 55.28 56.65 9/20/2017 55.98 58.68 9/21/2017 53.83 56.4 9/22/2017 51.49 53.77 9/25/2017 52.22 53.64 9/26/2017 49.88 51.34 9/27/2017 48.18 49.75 9/28/2017 48.05 49.46 9/29/2017 47.97 50.14 Long/ShortOrder TypeLimit Price Shares long limit 60.46 7600 long limit 63.73 6200 long limit 63.86 4200 long limit 63.86 1600 long limit 64.69 4700 long limit 65.55 1900 long limit 66.3 3300 long market n/a 1000 long market n/a 1700 short limit 62.52 2300 short limit 64.05 7500 short limit 65.13 1100 short limit 68.96 3800 short market n/a 2300 short market n/a 500 Trader ID 9/1/2017 9/5/2017 9/6/2017 9/7/2017 9/8/2017 73470 (95) (20) (62) (70) 6 154857 98 42 (75) (50) 29 226111 54 (54) (10) (84) 2 343311 119 (112) (59) 47 92 436358 (115) (99) 100 (6) 9 453227 (100) 85 (94) 64 20 538815 67 (30) 37 49 (23) 567545 (118) 60 47 (97) (27) 809026 61 (29) (9) 4 57 909339 29 157 125 143 (165) ### 80 (77) (38) (97) (16) (10) 9 (76) (20) 245 ### 12 (78) 31 (17) 103 (23) (86) 57 (43) 44 ### 81 5 (1) 90 16 (66) (67) 75 (53) (80) ### 107 33 3 (111) (6) (44) (91) 9 32 68 ### (82) (4) 91 (14) 16 40 37 54 11 (149) ### 2 21 (88) 70 (7) 7 (25) (8) 99 (71) ### (55) (86) (95) 89 111 (43) 22 49 (8) 16 ### (4) (72) 28 (1) (12) (58) 7 (87) 49 150 ### 16 (9) (91) (6) 5 57 91 79 (142) ### (14) (89) (1) 109 76 (54) 77 50 40 (194) ### 49 78 (49) (4) (4) 111 43 (39) (85) (100) ### (66) (88) 111 79 (40) 110 (41) (80) 41 (26) ### 91 29 (61) 69 118 35 (16) 14 (101) (178) ### 81 (101) (78) (80) 56 51 (95) 29 85 52 ### (16) 108 83 13 (4) (21) 11 (12) (37) (125)