Suppose that Mr Chan bought a barrel of oil for $C. The storage cost of one barrel of oil is $S per day, the interest rate is zero, and other costs are negligible.

(i) Briefly explain why Mr Chan may sell his barrel of oil at a negative price today?

(Hint: you may assume that the price of oil today is P₁ and the price of oil tomorrow is P₂)

(ii) Will the purchased price ($C) affect your answer to (i)? Explain briefly.

Give answer in detail brief explanation..thank you