REFINERY 1,000,000 barrels of crude oil $ 27.39 per barrel 1 bbl = 42 gallons Gasoline at 42,000 gallons per contract selling for 0.6515 per gallon Diesel at 42,000 gallons per contract sells for 1.0297 per gallon Assume you make a barrel of crude into 30 gallons of gasoline and 10 gallons of diesel Determine how many contracts of each are needed? What is the profit on the shipment of crude?

Essentials Of Investments
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ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Chapter1: Investments: Background And Issues
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REFINERY
1,000,000 barrels of crude oil $ 27.39 per barrel
1 bbl = 42 gallons
Gasoline at 42,000 gallons per contract selling for 0.6515 per gallon
Diesel at 42,000 gallons per contract sells for 1.0297 per gallon
Assume you make a barrel of crude into 30 gallons of gasoline and 10 gallons of diesel
Determine how many contracts of each are needed?
What is the profit on the shipment of crude?
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