28.10 Example (page 671) a company has to decide whether to invest $15 million to obtain 6 million barrels of oil at the rate of 2 million barrels per year for three years. The fixed operating costs are $6 million per year and the variable costs are $17 per barrel. The spot price of oil $20 per barrel and 1, 2, and 3-year futures prices are $22, $23, and $24, respectively. The risk-free rate is 10% per annum for all maturities Options, Futures, and other Derivatives, 5th edition 2002 by John C. HullOptions, Futures, and Other Derivatives, 5th edition © 2002 by John C. Hull 28.10 Example (page 671) A company has to decide whether to invest $15 million to obtain 6 million barrels of oil at the rate of 2 million barrels per year for three years. The fixed operating costs are $6 million per year and the variable costs are $17 per barrel. The spot price of oil $20 per barrel and 1, 2, and 3-year futures prices are $22, $23, and $24, respectively. The risk-free rate is 10% per annum for all maturities