(Answered) Question consider the jpmorgan heating oil example in the

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Question: Consider the JPMorgan heating oil example in the text of this chapter. We calculated the expected profit from the spot oil purchases and forward sale after making assumptions about borrowing and storage costs. Now assume that storage costs are toward the upper end of the range provided in the Bloomberg article, i.e., $4.5 instead of $3.85 per ton and that insurance costs are 1.5% and not 0.25% of hull value. What is the expected profit in this case?

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