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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.
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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.
How many JP54 Jet fuel Barrels to a Metric Ton?
7.7652
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 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.
