QUESTION 3 In August, a supplier anticipates a December crude oil sale of 715,000 barrels. In August the crude oil spot price is 38.33 and the January crude oil futures price is 37.81. The supplier intends to hedge its sale with the January futures contract. Assume the spot price in December will be 17.44..Crude oil contracts are 1,000 barrels and prices are quoted in dollars. a. Will the supplier open the hedge with a short or a long position? b. How many contracts are required to hedge the entire expected crude oil sale? c. If the January futures price in December is 36.52, does the supplier make a profit or a loss on its futures trade, and what is the value of that profit/loss? d. Given the 36.52 futures price, what is the effective price per barrel the supplier will receive for its crude oil