Use the following futures quotes taken from NYMEX. The spot price of oil is $27.90 per barrel.

Light Crude Oil (NYMEX)

(Price quotes for NYMEX Light Crude Oil delayed at least 10 minutes as per exchange requirements)

Month Click for chart	Current Session								Prior.Day
	Open	High	Low	Last	Time	Set	Chg	Vol	Set	Op Int
Mar'16	30.17	30.61	27.74	28.22	14:47	27.94	-1.75	616184	29.69	428564
					9-Feb
Apr'16	32.04	32.48	29.57	30.01	14:47	29.74	-1.90	283901	31.64	290505
					9-Feb
May'16	33.67	34.20	31.28	31.66	14:47	31.41	-2.02	128001	33.43	171831
					9-Feb
Jun'16	35.09	35.59	32.65	32.96	14:47	32.74	-2.18	101965	34.92	172700
					9-Feb
Jul'16	36.06	36.63	33.71	33.97	14:47	33.77	-2.34	42382	36.11	71184
					9-Feb
Aug'16	37.10	37.49	34.56	34.79	14:47	34.58	-2.45	20575	37.03	53799
					9-Feb

(a)What are the futures prices (settlement) for March, June and August 2016 delivery of crude oil?

(b)Would the August 2016 price be expected to be higher or lower than Marchs price? Explain the quotes that are observed.

(c)Using a cost-of-carry model, estimate the implied storage cost (using a continuously compounded rate) for the August 2016 crude oil contract. Use a risk-free rate of 0.37% continuously compounded per year, and assume that expiration is at the end of the month. Is there an arbitrage opportunity? Explain.

(d)Explain the difference between volume (Vol) and open interest (Op Int).