Question
Some airlines hedge jet fuel prices and some do not. When oil prices declined, some airlines that had hedged jet fuel prices were worse off
Some airlines hedge jet fuel prices and some do not. When oil prices declined, some airlines that had hedged jet fuel prices were worse off than those that did not hedge. How would you use a numerical example to show understanding of hedging by explaining why they were worse off. Why would this situation be used as an argument for or against hedging?
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Financial Markets and Institutions
Authors: Jeff Madura
12th edition
9781337515535, 1337099740, 1337515531, 978-1337099745
