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Question 42 2 pts Gas-Gen Co. owns one natural gas combined cycle electric generating plant with a 7000 Btu/KWh heat rate. Assuming gas prices are

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Question 42 2 pts Gas-Gen Co. owns one natural gas combined cycle electric generating plant with a 7000 Btu/KWh heat rate. Assuming gas prices are at $4.00/MMBtu, what is the physical "spark spread" (stated in +/- $/MWH) if Gas-Gen Co. operates the plant when power prices are $30/MWH? Question 43 2 pts Now suppose Gas-Gen Co. is concerned that in two months gas prices could rise and power prices could fall. How can the company best hedge against this risk? Sell the Spark Spread (Sell power futures and buy gas futures) Buy the Spark Spread (Buy power futures and sell gas futures) Buy at the money put options on power prices Buy at the money put options on power prices

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