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Suppose unleaded gasoline is currently trading at $3.70 per gallon. You face an interest rate of 6.40 percentand o carrying cost of 5.10 per gallon

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Suppose unleaded gasoline is currently trading at $3.70 per gallon. You face an interest rate of 6.40 percentand o carrying cost of 5.10 per gallon per month. The current market price of a four-month futures contract on gasoline is $4.20 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.) 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 proper galon

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