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need ASAP! please answer the following with formulas/explanation. will upvote once answered. thank you in advance! real MVP. (3) Suppose U.S. Airway wants to buy

need ASAP! please answer the following with formulas/explanation. will upvote once answered. thank you in advance! real MVP. image text in transcribed
(3) Suppose U.S. Airway wants to buy 1,000 barrels of jet fuel in 3 months. Today it enters one 6-month heating oil futures contract on NYMEX to hedge its position. The jet fuel spot price today is $29 /barrel. The today's heating oil futures price is $19/ barrel. Assume that 3 months later, the spot prices for jet fuel and heating oil are $35/ barrel and $27/ barrel respectively and the 3 -month futures price for heating oil is $29. What is the basis 3 months from now when U.S. Air purchases the jet fuel

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