You want to store oil in the Gulf Coast as your POV is that oil will be worth more next fall than it is currently in October 2016. a tank farm in Houston to store 500,000 barrels of oil from October 31, 2016 thru end of Oct 2017 at a cost of $100,000 per month. . In October 2016, you entered into a forward physical contract to purchase 500,000 barrels of 3. To execute on this trade, you enter into a storage agreement with ober oil from ABC trading company to be delivered into storage at the end of October 2016 at a . Since the product has not been sold yet, you enter into a November 2017 WTI futures . In May 2017, you enter into a physical forward sales contract to sell 500,000 barrels of oil . Since product has now been sold you buy 500 lots of November 2017 WTI futures at $58 per What was your profitloss on this trade? Show your calculations. (5 points) cost of $50.00 per barrel. contract to sell 500 lots of WTI futures at $52.00 per barrel. for $56.00 per barrel in October 2017 barrel. Short answer questions Points are listed for each question 1. You want to enter into an agreement to physically sell WTI crude oil at a set price of $60.00 per barrel today for delivery in 12 months you are worried about counter forward contract? Explain your answer. (5 points) You want the agreement to be for 400,000 barrels of oil and party risk. Would you be most likely to use a futures contract or a You are bullish on WTI so you are long 100 WTI contracts and also short 100 Brent contracts. The closing price yesterday for WTI was $50 and the closing price today is $51. The closing price yesterday for Brent was $49 and the closing price today is $53. What is your new mark to market P&L on this trade? (5 points) 2