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Futures or Forwards

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How do you think futures on fuel would be priced? What factors would be taken into consideration? Inflation? Future demand? Supply?

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Solution Summary

The expert determines how they think futures on fuel would be priced. The factors that would be taken into considerations, inflation, future demand and supply are determined.

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According to Deutch (2008), there are 10 factors that influence the price of futures of fuel:

1. High Demand
2. Limited Resources
3. Weather
4. Summertime travel
5. Corn Crop Loss
6. Futures Planning
7. Tax Rate
8. Geographic Location
9. ...

Solution provided by:
Keonda Grant-Taylor, MBA
Education
  • Doctorate of Management in Organizational Leadership, University of Phoenix - Online
  • MBA, Webster Univeristy
  • Dual BS Degrees, University of South Carolina
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