Diwali Airlines Has a Contract That Gives It the Opportunity

question 67

Multiple Choice

Diwali Airlines has a contract that gives it the opportunity to purchase up to 10,000,000 gallons of jet fuel at $2.00 per gallon. The current market price of jet fuel is $2.26 per gallon. Diwali believes it will only need 6,000,000 gallons of jet fuel. What is the value of this opportunity?

• A) $1,040,000
• B) $9,040,000
• C) $2,600,000
• D) $1,560,000

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Definitions:

Independent Regulatory Agency

A federal organization that creates and enforces rules in its specific sphere of influence, independent of executive control.

Government Corporation

A business owned by the government that operates with a degree of independence to provide services that could be commercial in nature.

Civil Service

The body of government employees who are employed on merit system principles, excluding military and political appointments.

Partisanship

Devotion or allegiance to a particular political party or cause, sometimes resulting in a polarized political environment.