As CFO of the OK Oil Co you expect to have produced 10,000 barrels of oil to

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As CFO of the OK Oil Co you expect to have produced 10,000 barrels of oil to sell in May,

2021. You are concerned that the spot price of oil may drop from the current price you are

receiving of $53 per barrel. You sell ten NYMEX WTI Light Sweet Crude Oil futures contracts in

units of 1,000 barrels per contract for May delivery at $51.94 per barrel. On the settlement date

of the contracts, the spot price you can receive for the oil is $54.50. What is your gain or loss

from hedging?

Related Book For answer-question

Microeconomics An Intuitive Approach with Calculus

ISBN: 978-0538453257

1st edition

Authors: Thomas Nechyba

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Posted Date: Mar 02, 2024 02:39 AM

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As CFO of the OK Oil Co you expect to have produced 10,000 barrels of oil to

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Microeconomics An Intuitive Approach with Calculus

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