A refiner for the next two months has exposure to 3562, Finance Basics

+44 141 628 6080
[email protected]

A refiner for the next two months has exposure to 3562

Question: A refiner, for the next two months, has exposure to 3.562 million gallons of ethanol for mixture with gasoline to create a blended fuel is traded on the NYNEX with contract size specifications of 29,000 gallons for each contract. The standard deviations for ethanol and futures contracts on ethanol are .72 and .82 respectively while the correlation coefficient is .75. What would be the optimal number of contracts for the refiner to hedge with?

View Complete Question

Request for Solution File

Ask an Expert for Answer!!

Finance Basics: A refiner for the next two months has exposure to 3562

Reference No:- TGS02864965

Expected delivery within 24 Hours

Have a Question? (oR Write a Review)

Write atleast 100 words!!

Recent Questions Asked Finance Basics

Q : What will be the cost of the software after 2 years using

1 program software used in manufacturing costs 25000000 at present the price is expected to decline at 15 per year due

Q : The reject rate on a given assembly line is given as a

question the reject rate on a given assembly line is given as a number in the units of faulty devices per 1000 units

Q : How profitable is a round trip trade state the

the new york spot exchange rate for the british pound gbpusd is 13436 and the spot exchange rate for the australian

Q : A regional restaurant chain club caf is considering

question a regional restaurant chain club cafeacute is considering purchasing a smaller chain sallys sandwiches which

Q : A refiner for the next two months has exposure to 3562

question a refiner for the next two months has exposure to 3562 million gallons of ethanol for mixture with gasoline to

Q : For your reference the following are depreciation

question for your reference the following are depreciation percentages for a 5-year macrs property for years 1 through

Q : Which one of the following statements is correct based on

1 you are considering two independent projects that have a required return of 15 percent project a has an initial cost

Q : Those who regulate business frequently come from the

question those who regulate business frequently come from the business environment they are intended to regulate in the

Q : At a discount rate of 5 what is the present value of these

1 an investment promises the following cash flow streams at the end of each year 1000 at year 1 through 4 2000 at year

1930395

Questions
Asked

3,689

Active Tutors

1450500

Questions
Answered

Start Excelling in your courses, Ask a tutor for help and get answers for your problems !!

ask Question

Asked Questions

How children have an innate resilience

Despite the trauma of abandonment, children have an innate resilience that allows them to overcome adversity and thrive. They demonstrate remarkable strength

Competence and confidence when imagining or engaging

Question: Jarrett generally feels a sense of competence and confidence when imagining or engaging in communication.

Describe psychology research methods

Question: An old adage in psychology research methods courses is that "correlation does not prove causation".

What helps to be more professional

What I can do. Find out what makes you different. What helps to be more professional . What can I do well? What things do people value in me?

Comment on parenthetical style

Comment on Parenthetical style: "The inclusion of plants in an indoor environment may positively impact our psychological response

Can you put this in study guide format

Can you put this in study guide format: External Validity Sample characteristics Stimulus Characteristics Multiple Treatment Interference

How does instagram shape the ways we see our bodies

Question: How does Instagram shape the ways we see our bodies? Our gender?