Morning H,
If the price of oil rises to $100 our hypothetical $60 forward position would then be at a notional loss because we would have to sell for $60 and forgo the $100.
Surely hedging is just a bet taken out on future oil prices. Companies taking out a hedge at current oil prices of $35 would do so to smooth future cash flow. They protect themselves against the downside and forgo the upside and presumably pay a premium to the hedge provider to boot.
I'm not sure you can take out a "hedge" at above market prices anyway, sounds more like a "put" option that you would have to pay a huge premium for. You cannot create an asset out of thin air
pj
- Forums
- ASX - By Stock
- FAR
- Rig Move
Rig Move, page-26
-
- There are more pages in this discussion • 24 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add FAR (ASX) to my watchlist
(20min delay)
|
|||||
Last
52.0¢ |
Change
0.000(0.00%) |
Mkt cap ! $48.05M |
Open | High | Low | Value | Volume |
52.0¢ | 52.5¢ | 51.5¢ | $289.9K | 557.5K |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
1 | 1960 | 51.5¢ |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
52.0¢ | 103276 | 2 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
1 | 5000 | 0.510 |
1 | 2495 | 0.495 |
1 | 47000 | 0.485 |
1 | 1999 | 0.475 |
2 | 92553 | 0.470 |
Price($) | Vol. | No. |
---|---|---|
0.520 | 103276 | 2 |
0.525 | 19005 | 2 |
0.530 | 101005 | 2 |
0.550 | 27285 | 2 |
0.555 | 10000 | 1 |
Last trade - 16.10pm 11/10/2024 (20 minute delay) ? |
Featured News
FAR (ASX) Chart |