Cronus Airlines Has a Contract That Gives Them the Opportunity

question 12

Multiple Choice

Cronus Airlines has a contract that gives them the opportunity to purchase up to 13,000,000 gallons of jet fuel at $2.00 per gallon. The current market price of jet fuel is $2.3 per gallon. Cronus believes they will only need 4,000,000 gallons of jet fuel. What is the value of this opportunity?

• A) $1,200,000
• B) $3,900,000
• C) $2,700,000
• D) $9,000,000

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Definitions:

Basic-Level Category

A classification that is more general than subordinate categories but more specific than superordinate categories, representing objects and concepts in the most naturally inclusive level.

Subordinate Level

A more specific category within a broader classification in a hierarchy or structure.

Soda

A sweetened, carbonated beverage often flavored with cola, fruit, or other tastes, commonly consumed as a refreshment.

Coca-Cola

is a carbonated soft drink brand and multinational corporation known for its flagship cola beverage, which has become one of the world's most recognized and consumed beverages.