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Tpy6a [65]
2 years ago
8

You’re the purchasing manager for a large trucking company, worried about a spike in oil prices come January 15 when you typical

ly buy your diesel fuel. You estimate you’ll need 200,000 barrels. The spot price is $60/barrel. Which of the following will hedge your risk of oil prices rising between now and then? Enter into a forward contract today to purchase 200,000 gallons of diesel on January 15 from the counterparty at $61/barrel. Enter into a forward contract today to sell 200,000 gallons of diesel on January 15 to the counterparty at $61/barrel. Enter into a forward contract today to purchase 200,000 barrels of diesel on January 15 from the counterparty at whatever the market price is then. Enter into a forward contract today to sell 200,000 barrels of diesel on January 15 to the counterparty at whatever the market price is then.
Business
1 answer:
krok68 [10]2 years ago
3 0

Answer:

Enter into a forward contract today to purchase 200,000 gallons of diesel on January 15 from the counterparty at $61/barrel.

Explanation:

Since in the given situation, it is mentioned that there is a spike in oil prices that comes on Jan 15 an estimated required barrels is 200,000 also the spot price is $60 per barrel so in order to hedge the risk we should entered into a forward contract today to acquire 200,000 diesel gallon as on Jan 15 from the counter party at $61 per barrel also the price is freezed

The same is to be considered

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Keynesian economics argues for the use of _____ policy to stabilize the economy.
slavikrds [6]

Answer:

Keynesian economics argues for the use of active government policy to stabilize the economy.

Explanation:

In order to alleviate or avert economic recessions, Keynesian economics places a strong emphasis on the employment of proactive government policy to control aggregate demand. Keynes contended that lengthy periods of high unemployment might result from a lack of general demand. Consumption, investment, government purchases, and net exports are the aggregate of four factors that determine an economy's amount of goods and services.

8 0
2 years ago
Which of the following statements about the theory of sustainability is true?a. Sustainability is the idea that socially respons
hammer [34]

Answer:

The correct answer is option A.

Explanation:

Sustainability can be basically defined as the ability to last constantly.

The theory of sustainability tries to describe a type of society and economy that is long lasting and can be lived on a global scale.

Sustainability in business is the proposition that if the companies act responsibly towards the environment and the society, they will be able to outperform their  peers. When they focus on the world's problems and see them as marketing opportunities they will be able to perform better than their peers.

8 0
3 years ago
Which of the following best explains why the taxes on discontinued operations are reported separately from taxes on continuing o
Inessa05 [86]

Answer:

The statement that best explains why the taxes on discontinued operations are reported separately from taxes on continuing operations is:

The taxes on discontinued operations are not expected to recur in future years.

Explanation:

Discontinued operations refer to the cessation of some business activities or segments.  They are usually reported as a separate line item.  Therefore, all the gains and losses for that discontinued division must be reported separately on the company's income statement. The purpose is to distinguish them from those of continuing operations.

4 0
3 years ago
If the owner of a concert hall wishes to use third-degree price discrimination to price its tickets at $20, $15, and $10, it sho
Anika [276]

Answer: more elastic in their demand for tickets

Explanation:

Third-degree price discrimination is used by company when different price is being charged to a particular group of consumers.

Based on the scenario in the question, the owner of the concert hall should price tickets lower for customers who are more elastic in their demand for tickets.

Elastic demand simply means that a little change in the price of the concert hall will lead to a higher change in the quantity demanded. In this case, when the price increases, such people will buy little tickets. Therefore, the prices should be set lower for these set of people as there will be a huge increase in demand when the price is lower.

3 0
2 years ago
Six years ago, James Corporation sold a $100 million bond issue to expand its facilities. Each debenture has a $1,000 par value,
Sauron [17]

Answer:

present value = $848.29

so correct option is c) $848

Explanation:

given data

bond sold = $100 million

time = 6 year

future value = $1,000 par value

original maturity = 20 years

years to maturity left = 14 years

annual coupon rate = 11.5%

require return = 14%

to find out

what price would you pay today for a James bond

solution

we get here first interest amount that is

interest = future value × annual coupon rate  × 0.5

interest = 1000 × 11.5% × 0.5

interest = $57.50

and rate = \frac{0.14}{2}

rate = 7%

now we find present value by

PV(Rate,nper, pmt, FV)

PV ( 7%, 28, 57.50,1000)

present value = $848.29

so correct option is c) $848    

6 0
3 years ago
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