Western Jet Requires a Minimum of 1,000,000 Litres of Jet

question 9

Multiple Choice

Western Jet requires a minimum of 1,000,000 litres of jet fuel each month to keep its fleet of Airbus 380A passenger jets running.If Western Jet Operations Manager enters into a future contract to buy 750,000 litres of jet fuel in 90 days he is engaging in ____________.

• A) Speculation
• B) Swap options
• C) Selling Short
• D) Hedging

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Definitions:

Par Value

A dollar amount assigned to each share of stock.

Unusual Items

Non-recurring or rare expenses or revenues that are not expected to happen regularly and are outside the ordinary activities of a business.

Income from Continuing Operations

The profit or loss generated from a company's regular business activities, excluding extraordinary items or discontinued operations.

Discontinues a Segment

The process of stopping operations, production, or sale of a particular division or segment within a larger business.