Gulf Exploration Inc plans to sell 2,000 barrels of crude oil in July. The spot price of
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Gulf Exploration Inc plans to sell 2,000 barrels of crude oil in July. The spot price of crude is currently $75.65 /barrel. Crude Oil futures are defined as 500b, $/b. August crude is quoted at 74.87.To fully hedge its position Gulf Exploration should
- Buy / Sell ----------
- How many contracts?
- The basis is---------
- A textbook Hedge will lock in an effective price of $-----------
Related Book For
Cost Benefit Analysis Concepts and Practice
ISBN: 978-0137002696
4th edition
Authors: Anthony Boardman, David Greenberg, Aidan Vining, David Weimer
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