Jet Fuel Hedging Strategies for the Department of Defense through Use of Financial Derivatives by William T Gibson

Jet Fuel Hedging Strategies for the Department of Defense through Use of Financial Derivatives by William T Gibson

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Jet Fuel Hedging Strategies for the Department of Defense through Use of Financial Derivatives by William T Gibson

The primary purpose of this research is to assess the practicality of utilizing some of the financial derivative products available on the market today in an effort to mitigate monetary losses due to the increasing price of jet fuel, thereby increasing stability in the DOD budget. The scope of this research will focus on the use of futures and call option contracts. Domestic jet fuel expenditure data was collected for Fiscal Years 1996 to 2007 and cross-referenced with the contract process of the previously mentioned financial hedging instruments during the same period of time. Results from the ex post facto analysis indicate that hedging with either heating oil futures or heating oil call options would have provided a tremendous overall savings to the DOD. Currently the DOD does not hedge its budget against fluctuation in the jet fuel spot market. The implication from this study is that the DOD should consider hedging its jet fuel exposure with either derivative, in particular call options as it is tailored for risk adverse customers.
SKU Non disponible
ISBN 13 9781286862520
ISBN 10 1286862523
Titre Jet Fuel Hedging Strategies for the Department of Defense through Use of Financial Derivatives
Auteur William T Gibson
État Non disponible
Type de reliure Paperback
Éditeur Biblioscholar
Année de publication 2012-10-26
Nombre de pages 66
Note de couverture La photo du livre est présentée à titre d'illustration uniquement. La reliure, la couverture ou l'édition réelle peuvent varier.
Note Non disponible