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Title: Swenson Oil & Gas allows its customers to prepurchase heating oil in June for the coming winter. ... Post by: papahomer on Jun 1, 2017 Swenson Oil & Gas allows its customers to prepurchase heating oil in June for the coming winter. Customers who took advantage of the offer prepurchased 400,000 gallons of oil at $3.50 per gallon. Swenson hedged its position by contracting to purchase 400,000 gallons of oil for November delivery at a price of $3.00 per gallon. If the November spot price is $3.85 per gallon, Swenson's gross profit on the heating oil sold in June will be
A) $100,000. B) ($100,000). C) $200,000. D) $0.00. Title: Re: Swenson Oil & Gas allows its customers to prepurchase heating oil in June for the coming ... Post by: vanrhee on Jun 1, 2017 Content hidden
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