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Suppose unleaded gasoline is currently trading at $2.00 per gallon, You face an interest rate of 3.00 percent and a carfying cost of $.03 per

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Suppose unleaded gasoline is currently trading at $2.00 per gallon, You face an interest rate of 3.00 percent and a carfying cost of $.03 per gallon per month. The current market price of a four-month futures contract on gasoline is $2.50 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.) b. Identify what the futures price should be under spot-futures parity. (Do not round intermediote calculations. Round your answer to 3 decimal places.) c. Calculate the potential profit per gallon. (Do not round intermediote calculations. Round your answer to 3 decimal places.)

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