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

Question

Quizplus · Accepted Answer

B) 13,000,000 × ($2.3 - $2.00) = $3,900,000

Cronus Airlines Has a Contract That Gives Them the Opportunity