On Commodity Exchange A, It Is Possible to Buy and Sell

question 71

Multiple Choice

On Commodity Exchange A, it is possible to buy and sell crude oil at $116 per barrel, while on Commodity Exchange B crude oil can be bought and sold at $117 per barrel. If there are transaction costs of 1% when buying or selling on either exchange, what is the net effect of buying a barrel of oil on Exchange A and selling it on Exchange B?

• A) -$1.33
• B) -$0.67
• C) $1.06
• D) $1.60

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Definitions:

Diabetic

Pertains to an individual who has diabetes, a chronic condition characterized by high levels of glucose in the blood due to insulin production or action issues.

Whole Wheat

Grain products comprising the entire kernel of the wheat, including the bran, germ, and endosperm, offering nutritional benefits over refined grains.

Imbalanced Nutrition

A nutritional state that does not meet the body's requirements for health, either through excess or deficiency.

Intake

The process of admitting a patient to a hospital or healthcare facility, or the consumption of food and drink.