A trucking company plans to buy 100,000 gallons of diesel fuel in January. The spot market price is 2.40/gallon. The company can remove its risk by entering today into a (physical delivery) forward contract with a counterparty to buy the fuel at $2.50/gallon.
a. true
b. false
Answer: a. true
Business
You might also like to view...
The competition faced by an organization has a strong influence on ongoing projects
Indicate whether the statement is true or false
Business
________ build and reinforce common bonds between members
A) Rites of passage B) Rites of integration C) Rites of socialization D) Rites of enhancement
Business