0
Jet fuel can be hedged with over-the-counter instruments like options and swaps or with exchange-traded futures such as futures on crude or heating oil. These contracts are based an underlying commodity which is not jet fuel. Therefore, it is not a perfect hedge. In the U.S., there is no futures contract on kerosene, the primary component of jet fuel.
Wiki User
∙ 15y ago
Add your answer:
Earn +20 pts
How many liters of jet fuel make a metric ton?
1,183 litres of jet fuel in a metric tonne
What is Jp 8?
JP-8 is a kerosene-based jet fuel, JP-8 is short for Jet Propellant 8.
What is over hedging?
Assuming you understand hedging, if you are over hedged it means that you will have an additional profit or loss after the hedge due to a miscalculation, misfortune or unavailability of an exact match to your crop size. For example. Corn is sold in 5000 bushel contracts. A farmer is thinking about growing 14,000 bushels of corn. He sees by the price of corn in the futures market that growing corn would generate a good profit, but what if the price changes between right now and when the corn is grown? He could "lose the farm." So he hedges. BUT 3 contracts will leave him "Over hedged." 2 will leave him under hedged by more so likely he would execute the lesser of the two evils and be 1,000 bushels overhedged. He calls his broker and SELLS 3 corn contracts on the futures market today (SELLS SHORT.) Three months later the corn has grown and he brings it to market, but the price has changed! Not to worry, he hedged. he receives $1 less per bushel due to the price change, BUT then he goes home and calls his broker and "OFFSETS" the hedge at the exchange resulting in a $1 per bushel profit. Viola! The exchange gain has offset the corn actuals market loss, and the farmer has earned his expected profit. The hedge saved the farm, and luckily the over hedge led to a small additional futures market profit . . .but it could have just as soon as been a small loss if the market had gone the other way.
How many JP54 Jet fuel Barrels to a Metric Ton?
7.7652
How many gallons of water does it take to put out one gallon of -Jet A- fuel on fire?
You do not use water to extinguish fuel fires. Water will only spread it.
Suppose that a bond portfolio with duration of 12 years is hedged using a futures contract where the underlying asset has duration of 4 What is likely to be implication on the hedge ratio and the hedg?
Suppose that a bond portfolio with duration of 12 years is hedged using a futures contract where the underlying asset has duration of 4 What is likely to be implication on the hedge ratio and the hedging strategy of the fact that 12 years rate is less volatile than the four years rate?
What is in jet fuel?
Jet fuel is kerosene base turbine aviation fuel
Is jet fuel conductive?
Jet fuel have low conductivity
Is rocket fuel the same as jet fuel?
No. Jet fuel is closely related to kerosene and diesel fuel.
What is the fuel capacity of a fighter jet?
3000 gallons of Jet fuel
Is jet fuel highly corossive or not?
Most common jet fuel is kerosine based and not corrosive.Most common jet fuel is kerosine based and not corrosive.
How many USG of jet fuel is in one t of jet fuel?
1
What is jet fuel role in aeroplanes?
Jet fuel is what powers the jet engine.Its a bit like putting petrol in your car.No fuel then you wont be going anywhere!
What is a jet fueled car?
Jet fuel is high grade diesel so a jet fuel car would use high grade diesel fuel.
Does jet fuel cause pollution?
Jet fuel is capable of polluting, just as gasoline is.
Price of jet fuel?
Thh Price uff Jet Fuel is 50.00 a gallon
What is JPA1?
JPA1 is a type of Jet Fuel. Not sure of the specifics, but it is a form of Jet Fuel.
