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Determining the market price of copper

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Jack entered into the long side of a forward contract on copper with Cindy (who was on the short side). Both agreed to a cash settlement instead of a physical delivery of copper. On the maturity date of the forward, Jack paid Cindy $15 000 to settle the forward. We can conclude that the market price of copper on the maturity date was lower than the agreed upon forward price.

Is the above statement true or false? Give explanations.

Reference no: EM133056767

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