Question: 6.) Problem: Today you are long a heating oil forward contract for March delivery in Chicago @ $ 1.54/gal and short a NYMEX March heating

6.) Problem: Today you are long a heating oil forward contract for March delivery in Chicago @ $ 1.54/gal and short a NYMEX March heating oil (HOH) contract at $1.54. On February 18 you sell a March Chicago HO vs NYMEX HOH basis at the board. You do an EFP with your counter party @ $1.60/gal a). How much $ did you make (+ or -) in $ per gal. b). Show the cash flows of the trade

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Financial statement information about four different companies is as follows. Instructions a. Determine the missing amounts. (Hint: For example, to solve for (a), Assets Liabilities = Stockholders'...

Tell me what you war Layout References Mailings Review View Help file and can't save any new changes. Please save a copy to avoid losing your work. Save a Copy 1). Define Basis 2). What is a risk...

1) Problem: Today you are long a heating oil forward contract for March delivery in Chicago @ $ 1.54/gal and short a NYMEX March heating oil (HOH) contract at $1.54. On February 18 you sell a March...

Today you are long a heating oil forward contract for March delivery in Chicago @ $ 1.54/gal and short a NYMEX March heating oil (HOH) contract at $1.54. On February 18 you sell a March Chicago HO vs...

On January 10th you are short a jet fuel forward contract for April delivery in Chicago @52.00/gal and long NYMEX April heating oil contract (HOJ) at $ 1.90 On March 15th you buy an April Chicago jet...

Problem (5 ps) On January 10th you are short jeal forward contra for Apr delivery in Chicago $200gal and long NYMEX Apego.com BU10 On March 15th you buy an April Chicago jet basis at 515 the board...

1. Explain why MGRM wanted to offer a price guarantee on purchase contracts for its customers? 2. Describe the position that MGRM had. Why did it want to hedge its position? 3. Describe the basic...

Assignment 1: Forwards and Futures, Interest Rate Derivatives and Swaps Due: Monday, February 15, 2015 All assignments are due on Monday 15th February 2015 by 6:00 p.m. at the latest. Late...

In December, 1993, Metallgescellschaft AG revealed publicly that its "Energy Group" was responsible for losses of approximately $1.5 billion, due mainly to cash-flow problems resulting from large oil...

1) The spot price of corn is $8.00/bu., and the futures price of the July contract is $8.25/bu. This contract expires in three months. Suppose that storage costs for corn for 3 months are $0.15/bu.,...

help to do the first problem of the assignment, just the first problem ! McGill University - Desautels Faculty of Management Instructor: P. Augustin FINE 448 Financial Derivatives...

Consider the following project information. a. Draw the network diagram for this project. b. Specify the critical path. c. Calculate the slack for activities A and D. d. What happens to the slack for...

municipal water authority is considering the installation of a new water system. Two options are being considered. The first option is a steel pipeline with an installation cost of $225 million....

Approximately how long ago did the first humans migrate into the America's? 1 5 , 0 0 0 years 6 , 0 0 0 years 1 0 , 0 0 0 years 4 0 , 0 0 0 years

On 1 March 2007 DB Limited issued R560 000 15% debentures at R98. The debentures were to be redeemed at par in four equal annual payments starting 28 February 2010. Required: Journalise the above...