Suppose you are a natural gas seller, selling physical natural gas in the spot market to a
Fantastic news! We've Found the answer you've been seeking!
Question:
Suppose you are a natural gas seller, selling physical natural gas in the spot market to a pipeline in Henry Hub (which is the same location as the delivery of the natural gas futures contracts). You hedge by locking in $3.50 per MMBtu with a futures contract. How will the hedge work, if by maturity day spot price of natural gas is ST?
Related Book For
Fraud examination
ISBN: 978-0538470841
4th edition
Authors: Steve Albrecht, Chad Albrecht, Conan Albrecht, Mark zimbelma
Posted Date: