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CTP · Question #136

(Topic 2) An airline wants to lock in the price of the jet fuel it needs to purchase to satisfy the peak in- season demand for travel. The airline wants to manage its exposure to fluctuations in…

The correct answer is C. Commodity. See the full explanation below for the reasoning.

Question

  • (Topic 2)

An airline wants to lock in the price of the jet fuel it needs to purchase to satisfy the peak in- season demand for travel. The airline wants to manage its exposure to fluctuations in fuel prices. What type of exposure is this?

Options

  • ATranslation
  • BDelivery
  • CCommodity
  • DSpeculative

How the community answered

(55 responses)
  • A
    4% (2)
  • B
    13% (7)
  • C
    76% (42)
  • D
    7% (4)

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