What is the cash flow for the company three months later, Financial Management

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What is the cash flow for the company three months later

Problem

Suppose a company wants to sell 1,000 barrels of jet fuel in 3 months. Today it enters one 6- month heating oil futures contract on NYMEX to hedge its position. Today the jet fuel spot price is $29/barrel and the 6-month heating oil futures price is $23/barrel. Suppose that 3 months later the basis of the hedge is $5/barrel. What is the cash flow for the company 3 months later?

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