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9. Suppose you are in charge of jet fuel purchases for Frontier Airlines. You like the futures price you see quoted for 10,000 gallons of
9. Suppose you are in charge of jet fuel purchases for Frontier Airlines. You like the futures price you see quoted for 10,000 gallons of jet fuel expiring August 19,2022 at $1.95 per gallon so you "buy" one futures contract. Suppose you observe the following futures price path from Day 0 to 3: Day 0-$1.95, Day 1=1.90, Day2=2.10, and Day3=2.21. a. What money changes hands on Day 0? b. What is the spot price on Day 3? c. What cash balances accrue into your futures cash account for each day? d. What cash balances accrue each day for the short side cash account? 9. Suppose you are in charge of jet fuel purchases for Frontier Airlines. You like the futures price you see quoted for 10,000 gallons of jet fuel expiring August 19,2022 at $1.95 per gallon so you "buy" one futures contract. Suppose you observe the following futures price path from Day 0 to 3: Day 0-$1.95, Day 1=1.90, Day2=2.10, and Day3=2.21. a. What money changes hands on Day 0? b. What is the spot price on Day 3? c. What cash balances accrue into your futures cash account for each day? d. What cash balances accrue each day for the short side cash account
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