Delta utilizes 1,500,000 gallons of jet fuel every month and wants to hedge its position by entering into a swap contract to buy its jet fuel monthly starting in one month for the next 5 months. The risk-free rate for all horizons up to 5 months is 1.25% and the forward price of jet fuel per gallon is listed below. What would be the swap price of the 1,500,000 gallons of jet fuel each month for the next 5 months?

 

Month Forward Price 1 $ 1.7900 2 $ 1.7950 3 $ 4 $ 5 $ 1.7975 1.8010 1.8075