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Posted: June 15th, 2022
A company enters into a cashless collar with a financial institution:Quantity hedged – 35,000 mcf of pure fuel per dayFloor – $three.755/mcf for March 2016Ceiling – $6.70/mcf for March 2016Bodily Settlement Value – $2.90/mcf for March 2016How a lot will the company obtain from the financial institution upon bodily settlement of pure fuel for the month of March 2016?
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