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:

Economic Benefits

The advantages or gains that are derived from specific economic actions, decisions, or policies.

Wildlife Habitats

Natural environments where various species of plants and animals live and interact.

Erosion Prevention

Erosion prevention involves strategies and practices aimed at stopping soil erosion to protect land and water resources.

Oxygen Production

The process by which organisms, primarily plants and algae, produce oxygen as a byproduct of photosynthesis.