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Exam Two Sarved Help 28 Suppose unleaded gasoline is currently trading at $3.90 per gallon. You face an interest rate of 6.80 percent and a

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Exam Two Sarved Help 28 Suppose unleaded gasoline is currently trading at $3.90 per gallon. You face an interest rate of 6.80 percent and a carrying cost of $.12 per gallon per month. The current market price of a four-month futures contract on gasoline is $4.40 per gallon. You are evaluating a three-month carry trade opportunity. a. Determine the present value of the storage costs (PVSC. (Round your answer to 4 decimal places.) 8 01:21 PV of storage cost b. Identify what the futures price should be under spot-futures parity. (Do not round Intermediate calculations. Round your answer to 3 decimal places.) Futures price c. Calculate the potential profit per gallon. (Do not round intermediate calculations. Round your answer to 3 decimal places.) Potential profit per gallon

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