Solved

Another Oil Refiner Is Offering to Trade You 10,150 Bbls

Question 3

Multiple Choice

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 10,00 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.
E) Purchase 10,150 Bbls of ANS on the market and refine both the ANS and WTI crude.

Correct Answer:

verifed

Verified

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents