Cashless collar with a financial institution

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Reference no: EM131043926

A company enters into a cashless collar with a financial institution:

Volume hedged - 35,000 mcf of natural gas per day

Floor - $3.755/mcf for March 2016

Ceiling - $6.70/mcf for March 2016

Physical Settlement Price - $2.90/mcf for March 2016

How much will the company receive from the financial institution upon physical settlement of natural gas for the month of March 2016?

Reference no: EM131043926

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Cashless collar with a financial institution : A company enters into a cashless collar with a financial institution: How much will the company receive from the financial institution upon physical settlement of natural gas for the month of March 2016?
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