23. On January 10th, Cassidy bought five Natural Gas April 2022 futures contracts. The price at the time was $3.769 per

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23 On January 10th Cassidy Bought Five Natural Gas April 2022 Futures Contracts The Price At The Time Was 3 769 Per 1 (24.8 KiB) Viewed 46 times

23. On January 10th, Cassidy bought five Natural Gas April 2022 futures contracts. The price at the time was $3.769 per MMBtu. On February 2nd, the price was $5.044 per MMBtu and on February 16th, the price was $4.573 per MMBtu. If each contract is for 10,000 MMBtu, what was Cassidy's total gain/loss if the position was closed out on February 16th? a. Loss of $40,200 d. Loss of $32,160 b. Gain of $8,040 e. Gain of $40,200 Loss of $8,040 24. Which of the following is not true with respect to crosshedging? Used when a futures contract is not available for the asset to be hedged. b. Crosshedging can be used in energy products. A hedge ratio of 1.0 is not usually optimal in crosshedging. d. Crosshedging can be used for agricultural products. Choose a contract whose futures price is least correlated with the asset price. e. a. c. e.