14. Natural gas futures prices are $6.85 (Oct), $7.50 (Nov), $8.15 (Dec), $8.20 (Jan), $8.25 (Feb),...

14. Natural gas futures prices are $6.85 (Oct), $7.50 (Nov), $8.15 (Dec), $8.20 (Jan), $8.25 (Feb), $8.20 (Mar), and $7.45 (Apr). The effective monthly interest rate is 1%.

a. During which months is storage expected occur?

b. What is your estimate of the expected monthly storage cost dur- ing those months?

Expert Solution

jeff jeffy answered 2 years ago

Date Sales (000,000) Sep-12 206 Oct-12 245 Nov-12 185 Dec-12 169 Jan-13 162 Feb-13 177 Mar-13...

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