A financial instrument used by airlines to fix the price of fuel over a period of time is known commonly as a what?

A financial instrument used by airlines to fix the price of fuel over a period of time is known commonly as a what?
A . commodity
B. swap
C. exchange
D. hedge

View Answer

Answer: B

Explanation:

This is a ‘swap’ and is explained on p.94. This is a type of ‘hedging’ but there is no such thing as ‘a hedge’. For a more in-depth look at Swaps see: https://www.mercatusenergy.com/blog/bid/77634/an-introduction-to-airline-fuel-hedging-strategies-swaps