Calculating Fair Value of Futures Contract for Crude Oil

ABC Corporation is considering entering into a futures contract to hedge its anticipated purchase of 10,000 barrels of crude oil in six months. The current spot price of crude oil is $60 per barrel. The risk-free rate is 5% per annum, and the storage cost for the oil is estimated at $1 per barrel for the six-month period. Additionally, the expected supply chain costs over the duration of the futures contract are expected to total $0.50 per barrel.

Based on this information, what should be the fair value of the six-month futures contract price for crude oil?