FlyerTalk Forums - View Single Post - Lufthansa's fuel hedging hit by Lehman crisis (source: Reuters)
Old Oct 29, 2008 | 2:49 pm
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hch
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Originally Posted by oliver2002
AFAIK hedge is a bet. If prices go north, the bank pays. If prices go south, LH pays.
I was always under the impression they were structured as options But yeah, if it was a plain futures contract that would be true. But I'm not really versed enough in the finance details to say what happens if your contract partner for a future disappear. I know we have some people on the board the know this in detail, maybe they can chime in.
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