Under each of the following scenarios show the value of


You are an oil consumer. You see a December WTI futures settling at $105 a barrel. You decide to hedge 20,000 barrels with this futures contract. Under each of the following scenarios, show the value of your futures position, the value of your cash position (careful: are you long or short the commodity?), and the total portfolio value. Don't forget the size of position! How many futures contracts do you need?

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Finance Basics: Under each of the following scenarios show the value of
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