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Suppose that an oil refiner in Houston refines 10,000 barrels. of Crude oil every month that she procures from the spot market. The current cash

Suppose that an oil refiner in Houston refines 10,000 barrels. of Crude oil every month that she procures from the spot market. The current cash price of Crude oil is $35/barrel. in the spot market and the NYBOT June Crude Oil Futures price is $38/barrel. The size of NYBOT Crude Oil Futures is 1,000 barrels. The refiner decides to fully hedge her expected cash position using 10 Call options on NYBOT June Crude Oil Futures with SP = $35/barrel. and premium C = $2/barrel. After 2 months, both cash price and Futures price increase -- CP = $38/barrel. and FP = $40/barrel. What would be the refiner's net cost per barrel of crude oil after purchasing crude oil from the cash market and lifting the hedge? Please enter just the numeric $ value.

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