Time is a vital resource that each company treasures and tries to convert into a benefit. When choosing document management software, take note of a clutterless and user-friendly interface that empowers customers. DocHub offers cutting-edge instruments to enhance your file management and transforms your PDF file editing into a matter of one click. Hide Cross to the Hedging Agreement with DocHub in order to save a ton of time as well as increase your productiveness.
Make PDF file editing an simple and intuitive process that saves you plenty of precious time. Quickly adjust your documents and send them for signing without having switching to third-party alternatives. Focus on relevant tasks and improve your file management with DocHub today.
hi this is David Harper Bionic turtle with an illustration of how we determine the number of futures contracts to use in a cross hedge Im going to use a classic example here imagine were an airline and we need to purchase jet fuel as part of our cost of doing business you may have noticed in the news recently that airlines that do not hedge against price increases in jet fuel if they are unhedged that can severely impact their profitability so if were that airline we want to hedge we want to use futures contracts probably the problem is that there is not a jet fuel futures contract that we can take a position in on a standardized exchange so if we want to use an exchange were going to have to go to a futures contract that is correlated to jet fuel but were going to call this a cross hedge because if we use for example heating oil futures theres going to be a correlation between heating oil and jet fuel but theyre not the same thing so its going to be imperfect hedge so were go