Your oil refinery will need to buy 250 000 barrels of crude oil in one week and you are worried about crude oil prices. Suppose you take on a long position in 250 crude oil futures contracts, each for 1 000 barrels of crude oil, at the current futures price of $68 per barrel. Suppose futures prices change each day over the next week as follows:
What is the daily and cumulative mark to market profit or loss (in dollars)that you will have on each of the next five days?
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Question

Your oil refinery will need to buy 250 000 barrels of crude oil in one week and you are worried about crude oil prices. Suppose you take on a long position in 250 crude oil futures contracts, each for 1 000 barrels of crude oil, at the current futures price of $68 per barrel. Suppose futures prices change each day over the next week as follows:
  What is the daily and cumulative mark to market profit or loss (in dollars)that you will have on each of the next five days?
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Quizplus · Accepted Answer

The Answer of Your oil refinery will need to buy 250 000 barrels of crude oil in one week and you are worried about crude oil prices. Suppose you take on a long position in 250 crude oil futures contracts, each for 1 000 barrels of crude oil, at the current futures price of $68 per barrel. Suppose futures prices change each day over the next week as follows:
  What is the daily and cumulative mark to market profit or loss (in dollars)that you will have on each of the next five days?
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Your Oil Refinery Will Need to Buy 250 000 Barrels