Question: Please use the case2010 Fuel Hedging at JetBlue Airways Explain the concept of cross-hedging and the resultant basis risk from cross- hedging. Should JetBlue continue

Please use the case"2010 Fuel Hedging at JetBlue Airways"

  1. Explain the concept of cross-hedging and the resultant basis risk from cross- hedging.
  2. Should JetBlue continue using WTI as an oil benchmark for its crude oil hedges or switch to Brent? Justify your answer using the provided data.

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