You are an oil trader working for an investment bank. An independent US producer wants to...
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You are an oil trader working for an investment bank. An independent US producer wants to hedge its production. He needs to sell 50 KBBL, period JUN24. Hedge is financial, ie client will trade a bullet swap (1 day fixing at the expiry of the contract). Below the prices on CME screen. Maturity Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Dec21/Dec22 Dec22/Dec23 Bid volume 100 100 50 50 10 5 10 100 50 bid price 62,34 62,38 62,41 62,46 62,5 61,5 62,6 -0,11 -0,12 WTI future Mid ? ? ? ? ? ? ? ? ? Offer price Offer Volume 62,36 62,42 62,49 62,54 62,6 64 62,7 -0,09 -0,08 100 100 50 50 10 5 10 100 50 Question 1: Please give an estimation for the mid price for Jun24 You are an oil trader working for an investment bank. An independent US producer wants to hedge its production. He needs to sell 50 KBBL, period JUN24. Hedge is financial, ie client will trade a bullet swap (1 day fixing at the expiry of the contract). Below the prices on CME screen. Maturity Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Dec21/Dec22 Dec22/Dec23 Bid volume 100 100 50 50 10 5 10 100 50 bid price 62,34 62,38 62,41 62,46 62,5 61,5 62,6 -0,11 -0,12 WTI future Mid ? ? ? ? ? ? ? ? ? Offer price Offer Volume 62,36 62,42 62,49 62,54 62,6 64 62,7 -0,09 -0,08 100 100 50 50 10 5 10 100 50 Question 1: Please give an estimation for the mid price for Jun24
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To estimate the midprice for the WTI Future with maturity in June 2024 JUN 24 we need to ... View the full answer
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