The next THREE questions are based on the following informat…

The next THREE questions are based on the following information. Assume an oil-producing company is planning to sell 100,000 barrels of crude oil in six months, and they want to use simple hedge to reduce the impact of price fluctuations. The current price of crude oil in the spot market is $80/bbl. The current NYMEX futures market price is $82/bbl. Assume that in six months, the spot market price will be $78.8/bbl and the futures contract will be $81/bbl.