Question: Please help me solve all parts. I will make sure to leave a thumbs up!! Your utility company will need to buy 100.000 barrels of

Your utility company will need to buy 100.000 barrels of or in 10 days' time, and it is worried about fool coste Suppose you go tong (buy 100 of futures contracts, each for 1000 borrels of or, at the current futures price of $50.99 per barrel Suppose futures prices change each day as follows 3. What is the marking to market profit or loss in dolar) that you will have on each date? b. What is your total profit or loss after 10 days? Have you been protected against a rise in oil prices? c. What in the largest cumulative lous you will experience over the 10-day period in what case might this be a problem? 2. What is the marking-to-market profit or loss (in dollars that you will have on each date? (Round the price change to the nearest cent and the profloss to the nearest dollar) Profit/Loss Day 0 $ 1 Price Price Change 59.99 59.555 64- 63- o os $62.52 62- 61 $61.78 $60,46 $60.78 Futures Price ($/bbl) 60-9 $59.55 59- $59.78 $59.46 58- $57.74 $57.96 57- $57.47 56- 0 0 6 5 Day 9 10
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