Question: This question is based on the information provided below. I am trying to see if own answer and work is correct. Please read the 11

 This question is based on the information provided below. I amtrying to see if own answer and work is correct. Please readthe 11 pictures I have posted before answering the question and pleaseprovide a detailed solution (with steps if needed). Thank you.Question: Suppose thatCTX buys a cap strike price of $3.90 tomanage its exposure tofuel prices for the estimated fuel usage of 126,000gallons. Calculate the profitand the average price paid per gallon for each ofthe following fourscenarios:Scenario A: Higher fuel usage combined with a high average fuelprice. Specifically,141,000 gallons of fuel used, average fuel price4.20$/gallon, $1,456,000 revenue and othercosts of $ 840,000 Scenario B: Lower fuel usage combined with ahigh average fuelprice. Specifically, 111,000 gallons of fuel used, average fuel price4.20$/gallon,

This question is based on the information provided below. I am trying to see if own answer and work 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: Suppose that CTX buys a cap strike price of $3.90 to

manage its exposure to fuel prices for the estimated fuel usage of 126,000

gallons. Calculate the profit and the average price paid per gallon for each of

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 fueel used, average fuel price

3.30$/gallon, $1,144,000 revenue and other costs of $ 660,000

$1,144,000 revenue and other costs of $ 660,000 Scenario C: Higher fuelusage combined with a low average fuelprice. Specifically, 141,000 gallons of fuelused, average fuel price3.30$/gallon, $1,456,000 revenue and other costs of $ 840,000Scenario D: Lower fuel usage combined with a low average fuelprice. Specifically,111,000 gallons of fueel used, average fuel price3.30$/gallon, $1,144,000 revenue and othercosts of $ 660,000 image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed

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