Use the following information to answer the TWO questions below:

A crude oil producer who is concerned that prices are going to fall enters into 100 contracts to sell crude oil at $100/barrel at the end of September 2022. A refiner who is concerned that the price of crude oil for September month end delivery is going to rise enters into 100 contracts to buy crude oil for $100/barrel at the end of September 2022. The futures contract for September 2021 ultimately settles at a price of $95/barrel.

a. Which party, the producer or refiner, is short the futures contracts?

b. Which party, the producer or refiner, is long the futures contracts?

Use the following information to answer the THREE questions below:

A crude oil producer who is concerned that prices are going to fall enters into 100 contracts to sell crude oil at $100/barrel at the end of September 2022. A refiner who is concerned that the price of crude oil for September month end delivery is going to rise enters into 100 contracts to buy crude oil for $100/barrel at the end of September 2022. The futures contract for September 2022 ultimately settles at a price of $95/barrel.

a. Which party, the producer or refiner, gained on the futures contracts?

b.. What is the total futures related profit to the party that gained (finished in-the-money) under the transaction?

c. What is the total futures related loss to the party that lost (finished out-of-the-money) under the transaction?