Question: b. Explain the likely reason for the change in hedge quantities from 2000 to 2001. c. State the additional information you would need to evaluate

b. Explain the likely reason for the change in hedge quantities from 2000 to 2001.

c. State the additional information you would need to evaluate the impact of these hedges on Amerada's earnings and ex- plain how that information would be useful.

d. Describe the effect of Amerada's 2001 hedges on 2002 in- come assuming that oil and gas prices (i) Increase (it) Decrease

e. State the additional information that you would need to evaluate the success of Amerada's hedging activities for oil and gas revenues and explain how that information would be useful.

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