1. Johnnies Airline is thinking of hedging its jet fuel costs over the next 3 months. The firm uses 3000 gallons a month. How much should you expect to pay each month for the 3,000 gallons if forward prices and interest rates per annum with continuous compounding are listed below?

Show all formulas please

1. $15,766.38
2. $15,769.75
3. $15,770.00
4. $15,773.52
5. $15,779.11

Forward Months Price 1 $ 5.22 2 $ 5.25 3 $ 5.30 Interest Rate 3.00% 3.50% 4.50%