Ex3_3 - 11-0.036 -0.036 12-0.011 -0.018 13 0.019 0.009...

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Example 3.3. An airline expects to purchase 2 million gallons of jet fuel in 1 month. The company decides to use heatiing oil futures for hedging. Month i 1 0.021 0.029 2 0.035 0.020 3 -0.046 -0.044 4 0.001 0.008 5 0.044 0.026 6 -0.029 -0.019 7 -0.026 -0.010 8 -0.029 -0.007 9 -0.048 0.043 10 -0.006 0.011
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Unformatted text preview: 11-0.036 -0.036 12-0.011 -0.018 13 0.019 0.009 14-0.027 -0.032 15 0.029 0.023 Table 3.2 Data to calcuate minimum variance hedge ratio when heating oil futures contract is used to hedge purchase of jet fuel. Change in futures price per gallon Change in fuel price per gallon...
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