November 10th, 2009, 11:10 am
Hello,Firstly, sorry this is not a particularly quantitative question - but hopefully someone can help me anyway I am trying to find out how gasoil 6-0-3 pricing works. I am in the process of putting together some simple pricing models, nothing particular out of the ordinary, and I am hoping to use this product as part of a demonstration.I cant seem to find out what this pricing actually is anywhere!! I gather it is a standard way of pricing a physical deal across three different curves - i.e., you buy gasoil but it is priced basis the six month average prior to delivery date, plus some spot component, plus some forward component. If anyone can help me out with a simple explanation of what this pricing structure is I would be very grateful.Thanks for your help,James