IIA Exam IIA-CIA-Part2 Topic 3 Question 51 Discussion

Actual exam question for IIA's IIA-CIA-Part2 exam

Question #: 51
Topic #: 3

An organization buys crude oil on the open market and refines it into a high-quality gasoline. The price of crude oil is extremely volatile. Which of the following is the most appropriate risk management technique to protect the organization against these price fluctuations?

AEnter into long-term gasoline purchase agreements with end customers.

BTrade crude oil derivatives at financial markets in order to benefit from price fluctuations

CPurchase crude oil-related derivatives such as futures or options

DStock as much raw materials as possible and consider Investing into additional facilities

Show Suggested Answer

Suggested Answer: A

by Melodie at May 08, 2022, 07:29 AM

Limited Time Offer

25%

Off

Get Premium IIA-CIA-Part2 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Currently there are no comments in this discussion, be the first to comment!