Which ratio maximizes the per-gallon profit

Assignment Help Financial Management

Reference no: EM131992814

Consider production ratios of 2:1:1, 3:2:1, and 5:3:2 for oil, gasoline, and heating oil. Assume that other costs are the same per gallon of processed oil.

Which ratio maximizes the per-gallon profit if oil costs $80/barrel, gasoline is $2/gallon, and heating oil is $1.80/gallon?

Suppose gasoline costs $1.80/gallon and heating oil $2.10/gallon. Which ratio maximizes profit?

Which spread would you expect to be most profitable during the summer? Which during the winter?

McDonald, Robert L. Derivatives Markets, 3rd Edition. Pearson, 20130712.

Reference no: EM131992814

Questions Cloud

Security drawbacks of granting privilege levels : Some network practitioners use privilege level to protect access to the router. What are some of the security drawbacks of granting privilege levels

Analyse your own communication style across various areas : BUSN20017 : Provide students with the opportunity to engage in reflective practice, using a range of diagnostic tools and feedback.

What is the stock current value per share : The required rate of return on the stock, rs, is 15%. What is the stock's current value per share?

It should return true if an empty string is passed : If and only if every character of the string is a vowel, your method should return true. It should return true if an empty string is passed.

Which ratio maximizes the per-gallon profit : Which ratio maximizes the per-gallon profit if oil costs $80/barrel, gasoline is $2/gallon, and heating oil is $1.80/gallon?

What channels were used in the campaign : Audience: Who was the target audience? What channels were used in the campaign? Media Plan: Work backwards to deconstruct the brand's media plan.

What is required rate of return : What stock price is expected 1 year from now? What is the required rate of return?

Polymorphism in designing the application in question : Based on this week's readings and videos and using the same scenario in Part I of this discussion, provide one (1) example of a scenario or situation

Inheritance in designing the application in question : Describe one (1) way in which you would use inheritance in designing the application in question. Provide a rationale for your response.

User Account

All Pages