Your Oil Refinery Will Need to Buy 250,000 Barrels of Crude

question 24

Essay

Your oil refinery will need to buy 250,000 barrels of crude oil in one week and it is worried about crude oil prices.Suppose you go long 250 crude oil futures contracts,each for 1000 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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Definitions:

Marketing Program

A comprehensive plan that integrates various marketing efforts such as advertising, sales, and public relations to achieve business objectives.

Planning Stage

The initial phase in a process where objectives are set and strategies are outlined.

Marketing Mix

A foundational marketing model comprising four key components: product, price, place, and promotion, used in developing a marketing strategy.

Situation Analysis

A systematic collection and evaluation of past and present economical, political, social, and technological data, aimed at identification of internal and external forces that may influence the organization's performance.