What is the largest cumulative loss

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Question - Your utility company will need to buy 100,000 barrels of oil in 10 days time, and it is worried about fuel costs. Suppose you go long 100 oil futures? contracts, each for 1,000 barrels of? oil, at the current futures price of $60.00 per barrel. Suppose futures prices change each day as follows LOADING...

a. What is the? mark-to-market profit or loss? (in dollars) that you will have on each? date?

b. What is your total profit or loss after 10 ?days? Have you been protected against a rise in oil? prices?

c. What is the largest cumulative loss you will experience over the 10?-day ?period? In what case might this be a? problem?

Reference no: EM132963467

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