Log and Hedging

1103 Words5 Pages
The data sources for historical spot and futures prices on crude oil and refined products are available at http://www.eia.gov/petroleum/data.cfm (click on “Prices”), and current oil futures price data are available at http://www.cmegroup.com/trading/energy/. While much of the basic ideas surrounding these projects come from Chapter 10 of the textbook, class discussions will involve deeper coverage than that posed in the textbook. I will be looking for evidence in your reports that you have been paying attention in class. Failure to provide such evidence will result in lower or possibly failing grades on the written report.

Description of assignment:

Underlying information for assignment:
The basic scenario: You work for a
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You need to keep these records yourself, but do not despair if you do not want to track settlement prices daily! Historical data on crude oil futures contract settlement prices are updated weekly at http://www.eia.gov/dnav/pet/pet_pri_fut_s1_d.htm. Through February 22, the March 2016 contract is “Contract 1” on the EIA website.

• In early March, your boss expects you to submit a written report containing the following components.

Required elements for written report:

Write a report (5 pages maximum, double-spaced…note that any data exhibits do not count toward the 5-page maximum) for the VP of VUL Air containing the following elements (PLEASE NOTE: Your instructor is NOT your audience, so be careful about your assumptions regarding your reader’s knowledge base). Your paper will be assessed based on the following factors: 1) correctness of content, 2) completeness of elements below, 3) rigor of analyses and creative judgment employed in designing analyses, and 4) effectiveness of communication (including professionalism):

Facts associated with implementation (Approximate weighting = 25%): • Documentation of futures contracts liquidated (date, quantity,
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