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The contract size for low grade petroleum oil futures is 100,000 barrels. Suppose you need 1,200,000 barrels of low grade petroleum oil, and the current

The contract size for low grade petroleum oil futures is 100,000 barrels. Suppose you need 1,200,000 barrels of low grade petroleum oil, and the current futures price is $44.50 per barrel. How many contracts do you need to purchase?

How much will you pay for the contracts in total?

What is your dollar profit if the oil sells for $46.25 per barrel when the contract expires?

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