What is mogul effective price of oil per barrel

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Question - Mogul Oil Company will sell 5000 barrels of oil in 4 months. Suppose Mogul hedges the risk by selling futures on 5000 barrels of oil. The current oil futures price is $18.1 dollars per barrel. If in 4 months the spot price of oil is $16.5 and the futures price is $18.8 per barrel, what is Mogul's effective price of oil per barrel?

Reference no: EM133042465

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