The Model Room · MR-032
HE LOCKED IN FUEL AT ONE-TEN. OIL DROPPED TO FIFTY SIX DAYS LATER. THE HEDGE HAD NO FLOOR.
On February 25, 2014, Marcus Lau locked in jet fuel prices at one hundred and ten dollars per barrel, knowing the contract had no downside protection. Just fifty-six days later, crude oil prices began to collapse, leading Horizon West Airlines to pay double the market rate for fuel while competitors thrived.
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