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Imagine American Airlines ( AA ) is concerned about fuel prices rising in the minimize price risk, AA enters an agreement with a swap dealer
Imagine American Airlines AA is concerned about fuel prices rising in the minimize price risk, AA enters an agreement with a swap dealer in which it will pay the swap dealer a fixed payment of $ on July th in exchange for a variable payment from that swap dealer in the future which will be the August futures price on July of Imagine that on July of the futures price is equal to $ and the cash price is $ In this case, what would be the net price the AA pays for crude oil in
Ignore transaction fees. Enter your answer as a number to two decimal places. That is if you believe the net price paid for crude oil is $ enter as your answer.
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