Question 3 5 pts Company Foley is an oil company based in U.S. It hedges its future oil sales by entering into a stack-and-roll trading strategy to long oil from Jan 2021 . The company suses futures contracts expiring within half a year and having liquidity to trade. The table below lists the three futures contracts that the company uses. Futures price is quated fot onfe barrel of oil. The company closes its last contract position in July 2021. a) What is the dollar gainyloss per barrel of oil from this stack-and-roll strategy? (2 marks) b) Does Company Foley face basis risk? Why? ( 2 marks) c) How did Company Foley close its position in July 2021? (1 mark) Question 3 5 pts Company Foley is an oil company based in U.S. It hedges its future oil sales by entering into a stack-and-roll trading strategy to long oil from Jan 2021 . The company suses futures contracts expiring within half a year and having liquidity to trade. The table below lists the three futures contracts that the company uses. Futures price is quated fot onfe barrel of oil. The company closes its last contract position in July 2021. a) What is the dollar gainyloss per barrel of oil from this stack-and-roll strategy? (2 marks) b) Does Company Foley face basis risk? Why? ( 2 marks) c) How did Company Foley close its position in July 2021? (1 mark)