Question

In: Finance

1) What is the value of an average super tanker full of WTI crude assuming you’re...

1) What is the value of an average super tanker full of WTI crude assuming you’re using spot price of crude in US dollars? What is that value using Euros?

Solutions

Expert Solution

Crude Oil is carried by Ultra Large Crude Carriers (ULCC) and Very Large Crude Carriers (VLCC).

(Note that WTI crude oil spot price is taken as 52.43 as on 11th February, 2019, the calculations are based on a VLCC and its capacity as they are more common n transportation of crude)

Cost in USD

The value of these carriers itself skyrockets to 100 to 120 million USD.

An average supertanker can easily hold 2 million barrels or WTI crude oil. ateking the price of WTI crude oil per barrel, it falls to 52.43 USD/bbl (USD per Barrel) That mean the cost would be = 2000000 Barrels x 52.43 USD/bbl.

That gives us a cost of 104,860,000 or 104.86 million USD.

Together they can be valued at 104.86 million USD + 110 million USD = 214.86 million USD

Cost in Euros

Cost of super tanker VLCC = 96 million Euros

Spot price of barrel of WTI Crude oil in euros = 46.13 Euros

Cost of 2 million barrels of WTI Crude Oil = 92.26 million EUR

Therefore the entire value is 188.26 million EUR, if WTI Crude Oil is taken.

Or

Spot price of Brent Oil = 58.53 EUR/bbl (20th February, 2019)

Cost of 2 million barrels or Brent Oil = 117.06 million EUR

Total Value of supertanker carrying Brent Oil = 213 million EUR.

I hope to have answered you Question.


Related Solutions

(1) What is a fixed price contract? Is the NYMEX WTI Crude oil Futures contract a...
(1) What is a fixed price contract? Is the NYMEX WTI Crude oil Futures contract a fixed price contract? Explain why or why not using an example. (2)Explain whether or not a fixed price contract can hedge a physical at index position. Or vice versa. Please answer both parts.
Assuming annual interest payments and a principal value of $100, what is the value of a...
Assuming annual interest payments and a principal value of $100, what is the value of a 4-year 6.8% coupon bond when the discount rate is i) 4.8%, ii) 6.8%, and iii) 7.1%? Show that your results are consistent with the relationship between the coupon rate, discount rate, and price relative to par value. -->(I looked the sample but didn't get it very well), Please explain it clearly, Thank you
Assuming annual interest payments and a principal value of $100, what is the value of a...
Assuming annual interest payments and a principal value of $100, what is the value of a 4-year 6.8% coupon bond when the discount rate is i) 4.8%, ii) 6.8%, and iii) 7.1%? Show that your results are consistent with the relationship between the coupon rate, discount rate, and price relative to par value.
1) Assuming no safety stock, what is the re-order point (R) given an average daily demand...
1) Assuming no safety stock, what is the re-order point (R) given an average daily demand of 50 units, a lead time of 10 days and 625 units on hand? 550 500 715 450 475 2) If annual demand is 12,000 units, the ordering cost is $6 per order and the holding cost is $2.50 per unit per year, which of the following is the optimal order quantity? 576 240 120.4 60.56 56.03 3) Using the economic order quantity model,...
1. Value the following scenario, assuming there is no end to the timeline and the following...
1. Value the following scenario, assuming there is no end to the timeline and the following data: Cost of equity = 17.75% Cost of debt = 6.83% Debt = $583MM Equity = $1237MM Tax rate = 40% Long-term growth expectations = 3.6% Future dividends are forecast as follows: Year 0: n/a Year 1: 128 Year 2: 149 Year 3: 162 Year 4: 175 Year 5: 182 (Round your answer to the nearest cent) 2. Use the data below to compute...
1. Assuming A equals the binary value 10101010 and B equals the binary value 11110000, the...
1. Assuming A equals the binary value 10101010 and B equals the binary value 11110000, the result of the bitwise-OR of A with B is? Just enter the 8-bit binary number that represents the result of the operation. Do not add any spaces, decimal points, commas, or base-2 subscript. Do not delete leading zeros. 2. Assuming A equals the binary value 10101010 and B equals the binary value 11110000, the result of the bitwise-XOR of A with B is? Just...
A. What is the critical value for a goodness of fit test with 7 categories assuming...
A. What is the critical value for a goodness of fit test with 7 categories assuming α = 5%? B. A goodness of fit test where the Ho is accepted would have a conclusion of? C. A goodness of fit test with a test statistic of 2.56 and a critical value of 3.325 would result in a conclusion of? D. The symbol used for the test statistic in a goodness of fit test is?
Assuming that the value of 1 Ghana cedis as at today is equal to $0.4100, two...
Assuming that the value of 1 Ghana cedis as at today is equal to $0.4100, two days ago the value of the Ghana cedis was GHC1 to $0.3800. i.calculate the percentage changed of the dollar in cedis. ii.Explain two factors that could have affected this change
Calculate the present value of the annuity assuming that it is (1) an ordinary annuity (2)...
Calculate the present value of the annuity assuming that it is (1) an ordinary annuity (2) an annuity due. Comparing the two types of annuities, all else equal, which type is more preferable? Why? Amount of annuity=$12,000 Interest rate=7% Deposit period (years)=3 Ordinary annuity = 33696, annuity due = 31492, ordinary annuity is better because it discounts for one less year. Ordinary annuity = 31492, annuity due = 33696, annuity due is better because it discounts for one less year....
What is the average performance of Quicksort assuming every input permutation is equally likely? Prove it....
What is the average performance of Quicksort assuming every input permutation is equally likely? Prove it. Hint: In this case pivot(split) element very likely to provide good balance during partition.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT