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 Stories About: Big Auto AND business AND cars AND oil
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Author |
Published |
Section |
I smell a hedging strategy
How much would you pay for cheap gas? |
Sean Casten |
07 May 2008 |
Gristmill |
| Suppose you're a commodity trader. Someone offers you a future contract to buy gasoline at $2.99/gallon for the next three years. If you think that you can sell that gasoline for more than that, you might think this is a license to print money, and would therefore pay for that privilege. Which raises the following questions: How much would you pay for that future 'strip'? Is the answer to Question 1 more or less than a Chrysler? |
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| Topics: Big Auto, business, cars, oil (all these topics) |
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