Diwali Airlines Has a Contract That Gives Them the Opportunity

question 39

Multiple Choice

Diwali Airlines has a contract that gives them 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 they will only need 6,000,000 gallons of jet fuel.What is the value of this opportunity?

• A)$1,560,000
• B)$2,600,000
• C)$1,040,000
• D)$9,040,000
• E)$12,000,000

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