Question
This is a math from Financial Futures Markets . You work is in the risk section of Mobil Oil Corporation. You and your team is
This is a math from Financial Futures Markets.
You work is in the risk section of Mobil Oil Corporation. You and your team is speculating that the crude oil price will go down significantly in November of this year due to geopolitical uncertainty. With the total consent of the company management, risk department of the company decided to hedge its position for the month of November. Today, the spot price of "Company A" crude is $60/Litre and New York Mercantile Exchange Oil expects the price will be $65/Litre in November of this year. With graphical representation and fictitious (any number you want to pick) number, show how the settlement will take place without asset delivery.
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