× Didn't find what you were looking for? Ask a question
Top Posters
Since Sunday
New Topic  
Memphic Memphic
wrote...
Posts: 728
Rep: 0 0
6 years ago
Another oil refiner is offering to trade you 10,150 Bbls of Alaska North Slope (ANS) crude oil for 10,000 Bbls of West Texas Intermediate (WTI) crude oil.  Assuming you currently have 10,000 Bbls of WTI crude, what should you do?
A) Sell 10,000 Bbls WTI crude on the market and use the proceeds to purchase and refine ANS crude.
B) Do nothing, refine the 10,000 Bbls of WTI crude.
C) Trade the 10,000 Bbls WTI crude with the other refiner and refine the 10,150 Bbls of ANS crude.
D) Trade the 10,000 Bbls WTI crude with the other refiner and then sell the 10,150 Bbls of ANS crude.
Textbook 
Corporate Finance: The Core

Corporate Finance: The Core


Edition: 4th
Authors:
Read 51 times
1 Reply

Related Topics

Replies
wrote...
6 years ago
A
Explanation:  A) Sell 10,000 Bbls WTI crude for 10,000 × $73.06 = $730,600
Buy $730,600/$71.75 = 10,182.5 Bbls of ANS, which is higher than 10,150 Bbls ANS
New Topic      
Explore
Post your homework questions and get free online help from our incredible volunteers
  1236 People Browsing
Related Images
  
 246
  
 2479
  
 535
Your Opinion
Which industry do you think artificial intelligence (AI) will impact the most?
Votes: 352