Fresnas Inc

question 8

Multiple Choice

Fresnas Inc., an oil refinery, buys crude oil and converts it into various products such as gasoline, kerosene, and diesel. Fresnas Inc., then, sells these products to other companies or retailers. Based on this information, which segment of the business market is most likely represented by Fresnas Inc.?

• A)Resellers
• B)Producers
• C)Distributors
• D)Governments

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Definitions:

Interest Rate Floor

A derivative contract that provides a minimum interest rate protection to investors, ensuring rates do not fall below a specified level.

Long Call Option

An investment strategy involving the purchase of a call option, giving the buyer the right, but not the obligation, to buy a specified quantity of a security at a specified price within a certain time period.

Call Option Contract

An agreement in finance that grants the individual holding it the freedom, but not the duty, to buy various assets like stocks, bonds, or commodities at a fixed price before the deadline expires.

Buyer

An individual or entity that purchases goods or services from another party.