How do you determine the value of MPC’s long position for the September 1st delivery on any date before September 1st, 2021?
on Jan 9, 2021? [Hint: value > 0. Why and how much?]
on September 1, 2021 when the spot price is $120? [Hint: $20m. Why?]
on March 1, 2021 when the spot price is $90? [Hint: value < 0. Why and how much?]