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0 Trong in a zero net supply market is a zero-sum game. 14 10 points We need to buy 20.000 barrels of jet fuel in

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0 Trong in a zero net supply market is a zero-sum game. 14 10 points We need to buy 20.000 barrels of jet fuel in two years. The current spot price of jet fuel is $42 per barrel. The historical standard deviation of jet tuel spot price returns is 0.09. The WT1 tutures contract has a current price of $40.04 per barrel, a contract size of 1000 barrels, and a historical price correlation of 0.87 with the pot price of jet fuel. The historical standard deviation of WTI futures price returns is 0.07. The Brent tutures contract has a current price of $41.17 per barrel and a contract size of 1000 barrels, and a historical price correlation of 0.83 with the spot price of jet fuel. The historical standard deviation of Brent futures price returns is 0.10. The heating oil tutures contract has a current price of $1.17 per gallon and a contract size of 42,000 gallons, and a historical price correlation of 0.90 with the spot price of jet fuel. The historical standard deviation of heating oil futures price returns is 0.10. How many contracts should we buy to hedge (adjust for "tailing and preserve two decimals). Prore your moner Submit PU F7 End FB Home F9 FIO F12 0 Trong in a zero net supply market is a zero-sum game. 14 10 points We need to buy 20.000 barrels of jet fuel in two years. The current spot price of jet fuel is $42 per barrel. The historical standard deviation of jet tuel spot price returns is 0.09. The WT1 tutures contract has a current price of $40.04 per barrel, a contract size of 1000 barrels, and a historical price correlation of 0.87 with the pot price of jet fuel. The historical standard deviation of WTI futures price returns is 0.07. The Brent tutures contract has a current price of $41.17 per barrel and a contract size of 1000 barrels, and a historical price correlation of 0.83 with the spot price of jet fuel. The historical standard deviation of Brent futures price returns is 0.10. The heating oil tutures contract has a current price of $1.17 per gallon and a contract size of 42,000 gallons, and a historical price correlation of 0.90 with the spot price of jet fuel. The historical standard deviation of heating oil futures price returns is 0.10. How many contracts should we buy to hedge (adjust for "tailing and preserve two decimals). Prore your moner Submit PU F7 End FB Home F9 FIO F12

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