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Suppose unleaded gasoline is currently trading at $3.80 per gallon. You face an interest rate of 6.60 percent and a carrying cost of $.11 per

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Suppose unleaded gasoline is currently trading at $3.80 per gallon. You face an interest rate of 6.60 percent and a carrying cost of $.11 per gallon per month. The current market price of a four-month futures contract on gasoline is $430 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 spotfutures parity. (Do not round intermediate calculations. Round your onswer to 3 decimal places.) c. Calculate the potential profit per gallon. (Do not round intermediote colculations. Round your onswer to 3 decimal ploces.)

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