The 6-month futures price for oil is $96.60 per barrel (or 2.30 cents per gallon).The 6-month futures prices for gasoline and heating oil are 2.50 cents and 2.15 cents,respectively.What is the gross margin on a simple 3-2-1 crack spread?

Question

Quizplus · Accepted Answer

The 3-2-1 crack spread involves buying 3 barrels of crude oil and selling 2 barrels of gasoline and 1 barrel of heating oil. The gross margin is calculated as: (2 * 2.50 + 1 * 2.15) - (3 * 2.30) = 5.00 + 2.15 - 6.90 = 0.25.

The 6-Month Futures Price for Oil Is $96