Valero energy planning

Assignment Help Other Subject
Reference no: EM13204546

Suppose Valero Energy (VLO) is planning on buying 100,000 barrels of crude oil each month for the next 6 months. VLO is concerned that the price of crude oil will rise. To hedge risk, VLO, in December of this year, initiated a financial commodity swap with a swap dealer for 12 months at a fixed price of $85.50/bbl.
VLO is the fixed price payer (will pay fixed payments to and receive floating payments from the swap dealer).
Assume that the floating rate payments are based on settlement futures price of NYMEX light sweet crude on the final day of trading in the contract month.
Compute VLO's fixed, floating, and net cash payments (for the next 6 months), if NYMEX WTI futures prices at the end of the month for the next 6 months are as follows:
a). Jan $87.00/bbl 
b). Feb $83.00/bbl 
c). Mar $81.00/bbl 
d). April $84.00/bbl
e). May $87.00/bbl 
f). June $92.00/bbl

Reference no: EM13204546

Questions Cloud

Daily schedule of work responsibilities : Larry has difficulty organizing his daily schedule of work responsibilities. He often makes careless mistakes or fails to complete his work because he is easily distracted. Larry's behavior is most characteristic of
Features-costs-training needed to operate : Imagine you are a software developer/inventor. Explain your invention thoroughly (features, costs, training needed to operate, and hardware requirements) and then outline its benefits to the health information system, and its benefits to patients as ..
Complete and accurate definition of psychology : Which of the following is the most complete and accurate definition of psychology?
Fear and avoid is most characteristic : Repeatedly introducing people to things they fear and avoid is most characteristic of
Valero energy planning : Suppose Valero Energy (VLO) is planning on buying 100,000 barrels of crude oil each month for the next 6 months. VLO is concerned that the price of crude oil will rise.
The social impact of total war : The social impact of total war included all of the following except
Affected the powers of the presidency : Search the Web to determine how the first three presidents (or any groups of presidents) affected the powers of the presidency.
American party system by the early 1840s : What is the correct answer to? Which of the following statements most accurately characterizes the American party system by the early 1840s?
Causes of the extraordinarily severe : Which of the following is the only correct response concerning the location and causes of the extraordinarily severe, 1993, flooding on the Mississippi River and tributaries?

Reviews

Write a Review

 

Other Subject Questions & Answers

  Instructional model steps for teachers

Create a lesson plan using the instructional model steps for teachers based on Gagne's theory, including Bloom's taxonomy, instructional objectives, activities, and media for any content area you choose.

  Fourth lateran council

The Fourth Lateran Council established the _______________ doctrine stating that the bread and wine of communion changed into flesh and blood of Christ when the priest spoke the words of consecration.

  List of reliable sources regarding domestic violence

These sources should present a comprehensive review of the historical and current literature in topic area. Address any key issues: political, social, legal, ethical implications the literature reports.

  In terms of social inequality-agrarian societies

In terms of social inequality, agrarian societies generally

  Calculate the total expenses

While purchasing certain items, a discount of 10% is offered if the quantity purchased is more than 1000. If quantity and price per item are input through the keyboard, write a program to calculate the total expenses.

  Ethical dilemma involving a corrupt business manager

Explain a good honest problem which you may encounter inside your present or even selected place of work. While using "Elements associated with Honest Reasoning" upon web page fourteen from the Small Manual.

  The feeding tube

June, a 34-year-old divorced woman diagnosed with severe anorexia, is hospitalized. Her doctors feel she may need to be placed on a feeding tube soon to save her life. Initially June agreed to the feeding tube. However, in the evening (before the tub..

  Describe how this passage relates to the key components

List some of the key components of the covenant process mentioned in Exodus 19 -Joshua. Find one passage in the Old Testament about the journey through the wilderness that relates to the development of the covenant God made with His people. Descri..

  Criminal sanctions

"Some would argue that there shouldn't be criminal sanctions (i.e., jail) for those who commit tax fraud. In fact, the United States is one of the few countries that punishes tax fraud with jail.

  Future trends in counselor evaluation

Give a brief description of the trend or direction on the way counselors administer, score, and interpret assessments. Explain the considerations and challenges for the use of assessment in that area.

  Just-in-time delivery system

The JIT concept (Just - In - Time) delivery system proved to be very effective for many companies both domestic and international. can you think of a company that employs the JIT strategy?

  Multi-lingual workforces to adopt english-only rules

Would you advise employers with multi-lingual workforces to adopt English-only rules? Under what circumstances?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd