14. Natural gas futures prices are $6.85 (Oct), $7.50 (Nov), $8.15 (Dec), $8.20 (Jan), $8.25 (Feb),...

14. Natural gas futures prices are $6.85 (Oct), $7.50 (Nov), $8.15 (Dec), $8.20 (Jan), $8.25 (Feb), $8.20 (Mar), and $7.45 (Apr). The effective monthly interest rate is 1%.

a. During which months is storage expected occur?

b. What is your estimate of the expected monthly storage cost dur- ing those months?

Solutions

Expert Solution

jeff jeffy answered 2 years ago

Next > < Previous

Related Solutions

Date Sales (000,000) Sep-12 206 Oct-12 245 Nov-12 185 Dec-12 169 Jan-13 162 Feb-13 177 Mar-13...

Date Sales (000,000) Sep-12 206 Oct-12 245 Nov-12 185 Dec-12 169 Jan-13 162 Feb-13 177 Mar-13 207 Apr-13 216 May-13 193 Jun-13 230 Jul-13 212 Aug-13 192 Sep-13 162 Oct-13 189 Nov-13 244 Dec-13 209 Jan-14 207 Feb-14 211 Mar-14 210 Apr-14 173 May-14 194 Jun-14 234 Jul-14 156 Aug-14 206 Sep-14 188 Oct-14 162 Nov-14 172 Dec-14 210 Jan-15 205 Feb-15 244 Mar-15 218 Apr-15 182 May-15 206 Jun-15 211 Jul-15 273 Aug-15 248 Sep-15 262 Oct-15 258 Nov-15...

Call Premiums Put Premiums Strike Jan. Feb. Jan. Feb. 105 7.50 7.75 .50 .60 110 6.25...

Call Premiums Put Premiums Strike Jan. Feb. Jan. Feb. 105 7.50 7.75 .50 .60 110 6.25 6.50 .65 .75 115 1.15 1.20 3.25 3.62 120 .75 .95 8.10 8.85 Suppose that you decided to set up a short strip position using the Jan. 105 options. Find your profit/loss if the stock trades for $110 when the options expire. Round intermediate steps to four decimals and your final answer to two decimals. Do not use the dollar sign when entering your...

Cash Disbursements Budget - Company A reports the following purchases and payments information: Dec. Jan. Feb....

Cash Disbursements Budget - Company A reports the following purchases and payments information: Dec. Jan. Feb. Mar. Apr. Purchases . . . $210,000 $150,000 $170,000 $180,000 $190,000 (a) Assume Company A makes cash payments of 40% of its purchases in the month of the purchase and pays the remaining 60% the following month. Compute the company's cash payments for each month from January through April. (Include formulas used to solve problem). Cash Disbursements Budget - Company B reports the following...

1. In the market for natural gas, what will likely happen to current natural gas prices...

1. In the market for natural gas, what will likely happen to current natural gas prices and output if the producers expect future prices to decrease? Current prices will ______________ and current sales will ______________. a increase; increase b increase; decrease c decrease; decrease d decrease; increase e not change; not change 2. If the current quantity of output in a market is greater than the equilibrium quantity, what would be the most accurate description of that level of production?...

Consider the following data: Monthly Profit of an Auto Repair Shop Month Jan-14 Feb-14 Mar-14 Apr-14...

Consider the following data: Monthly Profit of an Auto Repair Shop Month Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Profit ($) 17,123 17,273 16,055 18,138 19,763 17,310 19,131 18,578 20,373 Step 1 of 4 : Determine the three-period moving average for the next time period. If necessary, round your answer to one decimal place. Step 2 of 4 : Determine the three-period weighted moving average for the next time period with weights of 3 (most recent), 2 (second...

At the time when natural gas and oil prices were at record levels, oil and natural...

At the time when natural gas and oil prices were at record levels, oil and natural gas producer Andarko Petroleum announced the acquisition between two competitors, Kerr-McGee Corp, and Western Gas Resources, for 16.4 billion and 4.7 billion in cash , respectively. The acquired assets complemented Adarko’s operations, providing the scale and focus necessary to cut overlapping expenses and concentrate resources in adjacent properties. What do you believe were the primary forces driving Andarko’s acquisition? How will greater scale and...

1. The market for natural gas in Ontario can be approximated by: Qs = 14 +...

1. The market for natural gas in Ontario can be approximated by: Qs = 14 + 2Png +0.25Po Qd = -5Png + 3.75Po Where: Png = price of natural gas, Po = Price of Oil If the price of oil is $18 per barrel a. What would the free market price and quantity of natural gas be. b. If a price ceiling was imposed at $1 for natural gas what is the minimum deadweight loss. c. What would the Maximum...

the department of energy website contains information about monthly wholesale and retail prices for natural gas...

the department of energy website contains information about monthly wholesale and retail prices for natural gas in each state. go to www.eia.doe.gov/naturalgas/data.cfm and then click on the link monthly wholesale and retail prices. Under area, choose a state of interest to you, make sure the period Is monthly, and then under residential price click on view history. A window will open with a time plot covering approximately a 25-year period, along with a table of the monthly residential prices for...

Look up today’s wholesale prices of natural gas in Texas (4.74 Dollars per thousand cubic feet)...

Look up today’s wholesale prices of natural gas in Texas (4.74 Dollars per thousand cubic feet) Calculate how much a kWh of electricity should cost, if it is being produced from (a) natural gas and (b) wind. You will need to worry about efficiency of combustion, energy content of natural gas, conversion of joules in kWh, etc. You will also need to figure out how to price wind, which of course blows for free.

Subjects