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Suppose unleaded gasoline is currently trading at $2.60 per gallon. You face an interest rate of 42 percent and a carrying cost of $.09 per

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Suppose unleaded gasoline is currently trading at $2.60 per gallon. You face an interest rate of 42 percent and a carrying cost of $.09 per gallon per month. The current market price of a four-month futures contract on gasoline is $1.56 per gallon. You are evaluating a three-month carry trade opportunity a. Determine the present value of the storage costs (PVS), (Round your answer to 4 decimal places.) 11.12 points PV of storage costs 5 02081 Print References b. Idently what the futures price should be under spot-futures parlty. (Do not round Intermediate calculations. Round your answer to 3 decimal places.) Future price 2.900 c. Calculate the potential profit per gallon (Round your answer to 2 decimal places.) Potential profit per gallon

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