Hedging fuel consumption Hedge (finance)







airlines use futures contracts , derivatives hedge exposure price of jet fuel. know must purchase jet fuel long want stay in business, , fuel prices notoriously volatile. using crude oil futures contracts hedge fuel requirements (and engaging in similar more complex derivatives transactions), southwest airlines able save large amount of money when buying fuel compared rival airlines when fuel prices in u.s. rose dramatically after 2003 iraq war , hurricane katrina.







Comments

Popular posts from this blog

Life and work Ustad Mansur

Examples Wreath product

Kiev 35 mm cameras Kiev (brand)