Oil is selling at a spot price of $42.00 per barrel. Oil can be stored at a cost of $0.42 per barrel per month

The opportunity cost of capital is 7.2% per year (or 0.6% per month). What is the gain or loss realized by an oil refinery that floats its exposure and purchases oil on the spot market in 2 months at a price of $43.00 per barrel, instead of hedging with a forward contract?
A) $0.35 gain
B) $0.35 loss
C) $1.00 gain
D) $1.00 loss


A

Business

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A. Increase current liabilities by $1,600; increase non-current liabilities by $20,000. B. Increase current liabilities by $5,400; increase non-current liabilities by $20,000. C. Increase current liabilities by $5,400; increase non-current liabilities by $15,000. D. Increase current liabilities by $400; increase non-current liabilities by $20,000.

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Answer the following statement true (T) or false (F)

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A) Connectors are only found in traditional non-interactive media. B) Social media have limited appeal, reach, and influence over young consumers. C) Social media are vehicles for connecting marketers with connectors who then share opinions with the larger community. D) Product claims on the Internet are not verifiable, and most consumers do not trust social media. E) Social media are so new that marketers are still unsure of effective ways to wage public relations campaigns in this environment.

Business