Today is june 8th. an airline company wants to purchases 2,000,000 gallons jet fuel on december 8th (of the same year). they fear that the price of jet fuel will rise and thus would like to hedge the purchase of jet fuel by a futures contract. unfortunately, there exists no jet fuel futures contract. however, a futures contract for heating oil trades at the nymex (new york mercantile exchange) and, it is known that jet fuel is a derivative of heating oil. the spot price of jet fuel is $0.95 per gallon on june 8th. we assume that the spot price follows a geometric brownian motion with the expected annual log-return 2%, and annual volatility 10%. on june 8th, a futures contract specifies $1.03 per gallon for 500,000 gallons of heating oil for delivery on december 8th. we assume this price also follows a geometric brownian motion with the expected annual log-return 2%, and annual volatility 8%. we also assume that the correlation between the futures contract price of heating oil and the spot price of jet fuel is 0.94 on december 8th. what is the minimum variance hedge ratio? equivalently, how many future contracts of heating oil the airline company should buy?

Which of the following best describes biochemical evidence that would not support the modern concept of evolution? a. a bacterium that uses inorganic materials to produce energy b. an organism that does not undergo cellular respiration c. a species of bacteria that is capable of photosynthesis d. an organism that undergoes both aerobic and anaerobic respiration

Insurance companies have internal controls in place to protect assets, monitor the accuracy of accounting records and encourage operational efficiencies and adherence to policies. these internal controls are generally of two types: administrative controls and accounting controls. administrative controls are the policies and procedures that guide the daily actions of employees. accounting controls are the policies and procedures that delineate authorizations of financial transactions that are done, safeguard assets, and provide reports on the company’s financial status in a reliable and timely manner. internal controls should include both preventative and detective controls. the purpose of preventative controls is to stop problems and errors before they occur. detective controls identify problems after they have occurred. preventative controls are usually more effective at reducing problems, but they also tend to be more expensive. internal controls must be flexible to adjust for changes in laws and regulations in addition to adding new products or modifying current ones. companies must also do regular analyses to ensure that the benefits of implementing the controls are worth their costs. when concerned about paying unwarranted insurance claims which type of control would be useful?

Beck company had the following accounts and balances at the end of the year. what is net income or net loss for the year? cash $ 74 comma 000 accounts payable $12,000 common stock $21,000 dividends $12,000 operating expenses $ 13 comma 000 accounts receivable $ 49 comma 000 inventory $ 47 comma 000 longminusterm notes payable $33,000 revenues $ 91 comma 000 salaries payable $ 30 comma 000