Diwali Airlines has a contract that gives them the opportunity to purchase up to 10,000,000 gallons of jet fuel at $2.00 per gallon.The current market price of jet fuel is $2.26 per gallon.Diwali believes they will only need 6,000,000 gallons of jet fuel.What is the value of this opportunity?
A)$1,560,000
B)$2,600,000
C)$1,040,000
D)$9,040,000
E)$12,000,000

Question

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The Answer of Diwali Airlines has a contract that gives them the opportunity to purchase up to 10,000,000 gallons of jet fuel at $2.00 per gallon.The current market price of jet fuel is $2.26 per gallon.Diwali believes they will only need 6,000,000 gallons of jet fuel.What is the value of this opportunity?
A)$1,560,000
B)$2,600,000
C)$1,040,000
D)$9,040,000
E)$12,000,000

Diwali Airlines Has a Contract That Gives Them the Opportunity