What is the maximum profit of this trade

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Reference no: EM131820505

March Heating Oil futures (HOH) is trading $1.6500 per gallon and April Heating Oil futures (HOJ) is trading $1.6525 per gallon. Cost of carrying HO is $.0175 per gallon per month.

If you buy HOH and sell HOJ at these price differentials, what is the max loss of this trade? What is the maximum profit of this trade?

Could you please explain how you come to the solution?.

Reference no: EM131820505

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