Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
The standard deviation (square root of variance) of monthly changes in the spot price of jet fuel is 16.5 cents per gallon. The standard deviation of monthly changes in the futures price of crude oil is $4.5 per barrel. There are 31.5 gallons in 1 barrel. The correlation between the spot and futures price changes is 0.87. It is now October 15. An airline plans to purchase 1'000'000 gallons of jet fuel on November 15 and wants to use the December crude oil futures contracts to hedge risks in the jet fuel price. Each futures contract is for delivery of 1'000 barrels of crude oil. How many futures positions does the airline have to take to minimize its exposure to jet fuel price fluctuations? Ignore tailing adjustments to account for daily settlement.
Additional Information
The question lies from Statistics and it is a calculation of standard deviation and correlation of spot price and futures prices of jet fuel. This question requires both the understanding of Finance and Statistics to arrive at the solution.
A year after graduation. Find the probability that 8 randomly selected graduates all find jobs in their chosen field within a year of graduating.
For a population with a mean of (u)=50 and a standard deviation of (o)=10, how much error on average would you expect between the sample mean (M) and the population mean for the following samples
If, on the average, 20 orders are received by fax every two hours throughout the day, find the a. probability that a faxed order will arrive within the next 9 minutes.
larry r. has 5 producers in the southeast region. the reported scores on a compliance assessment instrument are 46 47
If a 99% confidence interval is calculated to estimate the difference between the average hourly rates for each type of graduate, what is the margin of error? Assume both population standard deviations are equal.
in an inertia welding experiment a sample of 50 welds made with a standard welding method were tested. the sample mean
Illustrate the regression model and predict it. The following table shows the yearly maintenance costs for several cars, as well as their age.
The mean daily amount of her tips was $24.85, with a standard deviation of $3.24. Can Ms. Brigden be 99% confident that she is earning an average of $20 or more per day in tips?
questiona jonka tries to connect to his internet service provider. the probability that he connects on any single
Use the frequency chart on the age of actors and when they won a prestigious award and construct a corresponding histogram.
a major department store chain is interested in estimating the average amount its credit card customers spent on their
the following data represent the costs in dollars of a sample of 30 postal mailings by a
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd