Question
United Airlines enters into a forward contract to buy (long) 20,000 barrels of jet fuel from an oil refinery on January 2021 at a forward
United Airlines enters into a forward contract to buy (long) 20,000 barrels of jet fuel from an oil refinery on January 2021 at a forward price of $1.90 per gallon. If the spot price of jet fuel on maturity date is $2.10, what is United Airlines' payoffs from this contract?
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Finance Without Fear Business Forecasting Workbook
Authors: William S. Hettinger, John Dolan Heitlinger
1st Edition
0982891717, 9780982891711
