Gulf Exploration Inc plans to sell 2,000 barrels of crude oil in July. The spot price of crude is currently $75.65 /barrel. Crude Oil futures are defined as 500b, $/b. August crude is quoted at 74.87.To fully hedge its position Gulf Exploration should 

• Buy / Sell ----------
• How many contracts?
• The basis is--------- 
• A textbook Hedge will lock in an effective price of $-----------

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To fully hedge its position Gulf Exploration should Sell N... View the full answer