What’s the cost of crude oil, in $/GJ? Use a major
spot price (Brent, WTI, etc)...
What’s the cost of crude oil, in $/GJ? Use a major
spot price (Brent, WTI, etc) and use an average for 2017. Keep in
mind that spot prices have occasionally been twice as high as the
2017 average since that year.
Why did the May futures price of WTI Crude go negative when the
May Brent Futures price did not go negative?
Why does the delta of an in-the-money call option decrease with
an increase in time to expiration?
What is the difference between an indicative price like LIBOR
and a transaction price like the S&P 500 and why is it
important?
can someone answer these questions for me.
Suppose that a one-month, 1,000-barrel NDF on WTI crude oil is
priced at $40.66/barrel. The spot (cash) price for WTI is
$40.00/barrel. Suppose that the trader quoting these prices
requires no collateral (performance bond) for entering into this
NDF contract, and never marks it to market. If you are a speculator
and enter into this NDF (taking a short position):
(i) What will be your cash-flow today?
A. Nothing B. minus $40,000 C. plus $40,000 D. None of the
above...
Suppose the current price (as of August 31) of WTI crude oil is
$44.53 per barrel, and assume oil can be stored
costlessly.
What is the forward price of WTI for delivery in 2 months
(T=October 31) if the 2-month interest rate is 1.6%?
If the forward price of WTI for delivery in 2 months (10/31)
were $44.41, is there an arbitrage opportunity? If so,
how would you exploit it and what would your profit be?
Go forward 1 month in...
(1) What is a fixed price contract? Is the NYMEX WTI Crude oil
Futures contract a fixed price contract? Explain why or why not
using an example.
(2)Explain whether or not a fixed price contract can hedge a
physical at index position. Or vice versa.
Please answer both parts.
Futures price of March 22 Brent Crude Oil contract is 80 USD per barrel, 1 contract refers to 1000 barrel. Investors enters a long position in 5 futures contracts. How high is the initial margin, if clearing house requires 10% of the contract value? (calculation is required)
On March 20, the spot price for Saudi Light Crude Oil stands at
$85.20 a barrel, while the August futures contract for Saudi Light
Crude stands at $86.32 per barrel. Based upon this information
answer the following questions.
a. Determine what the basis for Saudi Light Crude on March.
b. Based upon this basis value, would you expect normal
backwardation or contango to occur in the futures market as the
August oil futures contract moves toward settlement? Briefly
explain.
c....
1. During the first four months of 2020 the spot price of crude
oil has collapsed, while the price of natural gas has remained
relatively stable. In this question I want you to discuss the
pattern of prices for natural gas, paying attention to these
elements:
a) Describe the nature of the domestic natural gas market in the
US: what regulatory features are important, how do you think they
influence the market?
1. During the first four months of 2020 the spot price of crude
oil has collapsed, while the price of natural gas has remained
relatively stable. In this question I want you to discuss the
pattern of prices for natural gas, paying attention to these
elements:
a) How important is international trade in natural gas, and what
considerations influence international trade?
1. During the first four months of 2020 the spot price of crude
oil has collapsed, while the price of natural gas has remained
relatively stable. In this question I want you to discuss the
pattern of prices for natural gas, paying attention to these
elements:
a) What effects, if any, do you think the policy response to
COVID-19 has had on the demand for and supply of natural gas in the
US?