On October $1,2023,$ you buy $100,000$ barrels of physical WTI for January $2024$ delivery at a fixed price of $$80\mathrm{.}00.$

Once you receive the barrels of WTI in January, you will immediate sell it in the spot market.

On November $1,2023$ you also decided to hedge the physical position by selling a $100,000$ barrel Jan $2024$ WTI swap for $$\frac{75\mathrm{.}00}{b}bl.$

What is the mark to market value of the physical long position on the following dates? $($ignore discounting$)$

What is the mark to market value of the short financial swap position on the following dates? $($ignore discounting$)$

$\frac{10}{1}\frac{?}{2023}$

$\frac{11}{1}\frac{?}{2023}$

$\frac{12}{1}\frac{?}{2023}$

expiration

What is the total mark to market value of the two combined trades on each of the following dates?

$\frac{10}{1}\frac{?}{2023}$

$\frac{11}{1}\frac{?}{2023}$

$\frac{12}{1}\frac{?}{2023}$

expiration

How much did you pay for the physical barrels you purchased?

What did you receive when you sold those barrels in the spot market?

What was your net cashflow on physical transactions?

What is your swap cashflow?

What was your overall net cashflow?

What is your effective price of purchasing the barrels after hedging?