Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Cronus Airlines has a contract that gives them the opportunity to purchase up to 6,000,000 gallons of jet fuel at $2.00 per gallon. The current
Cronus Airlines has a contract that gives them the opportunity to purchase up to 6,000,000 gallons of jet fuel at $2.00 per gallon. The current market price of jet fuel is $2.27 per gallon. Cronus believes they will only need 5,000,000 gallons of jet fuel. What is the value of this opportunity?
A. $1,620,000
B. $1,350,000
C. $1,000,000
D. $270,000
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started