Use the Information for the Question(s)below

question 76

Multiple Choice

Use the information for the question(s) below. As an oil refiner,you are able to produce $76 worth of unleaded gasoline from one barrel of Alaska North Slope (ANS) crude oil.Because of its lower sulfur content,you can produce $77 worth of unleaded gasoline from one barrel of West Texas Intermediate (WTI) crude.
-Another oil refiner is offering to trade you 10,150 Bbls of Alaska North Slope (ANS) crude oil for 10,000 Bbls of West Texas Intermediate (WTI) crude oil.Assuming you currently have 10,000 Bbls of WTI crude,what should you do?

• A)Sell 10,000 Bbls WTI crude on the market and use the proceeds to purchase and refine ANS crude.
• B)Do nothing,refine the 10,000 Bbls of WTI crude.
• C)Trade the 10,000 Bbls WTI crude with the other refiner and refine the 10,150 Bbls of ANS crude.
• D)Trade the 10,000 Bbls WTI crude with the other refiner and then sell the 10,150 Bbls of ANS crude.

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Definitions:

Common Law Fraud

A form of fraud based on case law where a false representation of a material fact is made with intent to deceive and resulting in damage to the victim.

Reckless Ignorance

A state of disregarding or showing indifferent concern towards the consequences of one’s actions, often leading to harm or risks.

Embezzled Funds

Money that is dishonestly taken from an employer or organization by someone in a position of trust, typically for personal use.

Unqualified Opinion

An auditor's report that the financial statements of an entity present fairly its affairs in all material respects according to the applicable financial reporting framework.