Your trading is to primarily hedge your risk exposure to the oil price.

For student whose student number end with odd number, assume you are treasurers at airline company

and you are going to buy $10,000$ barrels of jet fuel oil in $3$ months.

You aim to use Energy future products to hedge your price risk. Record the fuel price when they start

to take positions on CME, to: $1)$ provide a background info about$/$justify how many contracts you go

long$/$short$,2)$ show whether you succeed in hedging risk

You have $$100,000$ USD cash on hand at the beginning of your trading. You must use at minimum $70\%$

of your account balance to hedge your oil price risk. Meanwhile, you are allowed to have up to $30\%$

of your account balance to speculating$/$arbitraging$,$ and the speculation$/$arbitrage products are not limited

to Energy futures $($e$.$g$.,$ other future products, you can even use Crypto futures to earn short$-$term profit

but also mind the potential loss$).$

Give an overview of your trading objectives.

Provide a summary on how you use Energy future products to hedge your commodity price risk.

The content should include but not limited to :

Do you think it is necessary to hedge your jet fuel price risk, and what percentage of

your exposure you think you should hedge $($e$.$g$.,?\%$ out of the $10,000$ barrels$)$

Which future product$($s$)$ you use to hedge your risk, outline their basic specs?

What strategy you employed to hedge $($e$.$g$.,$ delivery month, contract price, contract

amount, long or short, etc$)?$

What is the performance of your hedging by the end of your last trading date? And how

the spot price change for jet fuel oil?

Are there any differences between jet fuel oil and the underlying assets of your selected

hedging product? And what risk can be generated from these differences?

Provide a summary on how you use future contracts to speculate$/$arbitrage during your

trading period. The content should include but not limited to :

Why do you take$/$not take a speculation position?

How does the speculation perform and explain your profit$/$loss$?$