Question: This question is based on the case Central Express Trucking. I am trying to compare it with my own solution and see if it is

 This question is based on the case "Central Express Trucking." Iam trying to compare it with my own solution and see ifit is correct. Please read the 11 pictures I have posted beforeanswering the question and please provide a detailed solution (with steps ifneeded). Thank you. Question:The purpose of this question is to evaluate theeffect of quantity uncertainty when using derivatives to manage risk. To explorethis issue evaluate what happens if all the estimated fuel usage of126,000 gallons is hedged with the swap in the following four scenarios:Scenario A: Higher fuel usage combined with a high average fuel price.Specifically, 141,000 gallons of fuel used, average fuel price 4.20$/gallon, $1,456,000 revenueand other costs of $ 840,000 Scenario B: Lower fuel usage combined

This question is based on the case "Central Express Trucking." I am trying to compare it with my own solution and see if it is correct. Please read the 11 pictures I have posted before answering the question and please provide a detailed solution (with steps if needed). Thank you.

Question:The purpose of this question is to evaluate the effect of quantity uncertainty when using derivatives to manage risk. To explore this issue evaluate what happens if all the estimated fuel usage of 126,000 gallons is hedged with the swap in the following four scenarios:

Scenario A: Higher fuel usage combined with a high average fuel price. Specifically, 141,000 gallons of fuel used, average fuel price 4.20$/gallon, $1,456,000 revenue and other costs of $ 840,000

Scenario B: Lower fuel usage combined with a high average fuel price. Specifically, 111,000 gallons of fuel used, average fuel price 4.20$/gallon, $1,144,000 revenue and other costs of $ 660,000

Scenario C: Higher fuel usage combined with a low average fuel price. Specifically, 141,000 gallons of fuel used, average fuel price 3.30$/gallon, $1,456,000 revenue and other costs of $ 840,000

Scenario D: Lower fuel usage combined with a low average fuel price. Specifically, 111,000 gallons of fuel used, average fuel price 3.30$/gallon, $1,144,000 revenue and other costs of $ 660,000

For each scenario calculate the profit and the average price paid per gallon. Express all your calculated average prices per gallon with three decimals.

with a high average fuel price. Specifically, 111,000 gallons of fuel used,average fuel price 4.20$/gallon, $1,144,000 revenue and other costs of $ 660,000Scenario C: Higher fuel usage combined with a low average fuel price.Specifically, 141,000 gallons of fuel used, average fuel price 3.30$/gallon, $1,456,000 revenueand other costs of $ 840,000 Scenario D: Lower fuel usage combinedwith a low average fuel price. Specifically, 111,000 gallons of fuel used,average fuel price 3.30$/gallon, $1,144,000 revenue and other costs of $ 660,000For each scenario calculate the profit and the average price paid pergallon. Express all your calculated average prices per gallon with three decimals.image text in transcribed

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