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in january, an airline company ABC decided to hedge for next year's jet fuel consumption using a one year WTI contract. when the hedge was

in january, an airline company "ABC" decided to hedge for next year's jet fuel consumption using a one year WTI contract. when the hedge was placed one year to Dec WTI futures was trading at $70 per barrel the spot price of WTI was $60 per barrel in the spot price of jet fuel with $67 per barrel. when the hedge was closed in December before the maturity of the December WTI futures contract the spot price of WTI was $80 per barrel. the December WTI futures contract was trading at $80.02 per barrel, and the jet fuel was trading at $83 per barrel what was ABC's price for jet fuel using the long futures cross hedge? assume that the entire next years consumption of jet fuel was bought in the spot market in December.

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