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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?

    © BrainMass Inc. brainmass.com June 4, 2020, 2:48 am ad1c9bdddf

    Solution Preview

    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 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.