Question: points Save Answe It is April 15, 2020 now. A company knows that it will need to purchase 30,000 barrels of crude oil sometime in

points Save Answe It is April 15, 2020 now. A company knows that it will need to purchase 30,000 barrels of crude oil sometime in June. The current May oil futures price is $25.00 per barrel and the current July oil futures price is $27. On June 11, the spot oil price is $28 per barrel and that is the time you decide to take oil position (one oil futuros contracts1,000 barrels) and July futures price is $29. a. What futures contract should be used for hedge purpose? (sample answer: May Futures; or July Futures) b. What will be the net cost of oil if you take a long position in July oil futures contracts on April 15, 20207 (Sample Answer: $25.50) points Save Answe It is April 15, 2020 now. A company knows that it will need to purchase 30,000 barrels of crude oil sometime in June. The current May oil futures price is $25.00 per barrel and the current July oil futures price is $27. On June 11, the spot oil price is $28 per barrel and that is the time you decide to take oil position (one oil futuros contracts1,000 barrels) and July futures price is $29. a. What futures contract should be used for hedge purpose? (sample answer: May Futures; or July Futures) b. What will be the net cost of oil if you take a long position in July oil futures contracts on April 15, 20207 (Sample Answer: $25.50)

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