On DEC 5, 2020, Refinery RR had a contract to purchase from an Oil Producer 100,000 barrels on JUNE 15, 2021 and on DEC 15, 2021. These two purchases will be at the spot prices that will materialize on these dates. The spot price on DEC 5, 2020 was $75/barrel.
The Oil Producer wished to fix the selling price to $76.50/barrel but could not sell the crude oil today on a forward contract basis.
Use a time table to show how The Oil Producer may use NYMEX crude oil futures and a swap so as to guarantee the selling price of $76.50/barrel on the two selling dates.