Jetstar is dependent on aviation fuel in its transportation business. Petroleum products are priced in USD. In order to reduce the uncertainty around the future price of aviation fuel the most comprehensive risk treatment strategy for Jetstar is:Group of answer choicesDo nothingPurchase a USD forward exchange product.Purchase both USD and petroleum forward exchange contracts.Purchase a petroleum forward exchange contract.

Why is the price of jetfuel riskier for foreign airlines as compared to U.S. airlines?

Jetstar offers a variety of different sales throughout the year. It offers Christmas Sale fares with reduced prices of 30% for flights over the Christmas holiday period. It also offers other sales enabling customers to buy selected domestic flights for $1. Select the item from the list provided to make the following statements true. 2. With both types of sale fares, ceteris paribus, quantity demanded would have __________. 5. When compared to sale fare prices, the quantity demanded when no sales fares are available, ceteris paribus, would __________. 10. Given there is a decrease in prices with the sales promotion, ceteris paribus, how is the impact on demand described by an economist? __________ 1. Movement up and along the demand curve 2. Increased 3. Not equal 4. Shift to the left of the demand curve 5. Decrease 6. Decrease in demand 7. Shift right of the demand curve 8. Shift left of the supply curve 9. Movement both up and down along the demand curve 10. Movement down and along the demand curve 11. Not enough information to know 12. Nothing has changed

(b) Discuss the impact of currency fluctuations on the price of jet fuel.

Aviation fuels are produced from crude oil. Avgas is gasoline while jet fuel is kerosene. is a process that separates these two fuel components from the crude oil based on their different points.

Forwards, futures and options are examples of derivatives that can be used to hedge against foreign currency risk exposure. Group of answer choicesTrueFalse