Suppose unleaded gasoline is currently trading at $3.30 per gallon. You face an interest rate of 5.6 percent and a carrying cost of $.06 per gallon per month. The current market price of a four-month futures contract on gasoline is $1.63 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.) PV of storage costs
b. Identify what the futures price should be under spot-futures parity. (Do not round intermediate calculations. Round your answer to 3 decimal places.) Future price
c. Calculate the potential profit per gallon. (Round your answer to 2 decimal places.) Potential profit per gallon

Jodi is trying to save money for a down payment on a house. she invests $6,000 into an account paying 5.5% simple interest. for how long must she save if she needs $7,300 for the down payment? a. 2 years b. 3 years c. 4 years d. 5 years

Neveready flashlights inc. needs $317,000 to take a cash discount of 3/15, net 70. a banker will loan the money for 55 days at an interest cost of $13,200. a. what is the effective rate on the bank loan? (use a 360-day year. do not round intermediate calculations. input your answer as a percent rounded to 2 decimal places.) b. how much would it cost (in percentage terms) if the firm did not take the cash discount but paid the bill in 70 days instead of 15 days? (use a 360-day year. do not round intermediate calculations. input your answer as a percent rounded to 2 decimal places.) c. should the firm borrow the money to take the discount? no yes d. if the banker requires a 20 percent compensating balance, how much must the firm borrow to end up with the $317,000? e-1. what would be the effective interest rate in part d if the interest charge for 55 days were $7,200?

Which of the following is not an example of one of the four mail advantages of prices on a free market economy