Effective price received by company for commodity

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On March 1st, the price of a commodity is $1,000 and the December futures price is $1,015. A producer of the commodity entered into a short position in a December futures contracts on March 1st to hedge the sale of the commodity on November 1. It closed out its position on November 1st. On November 1st, the price of the commodity is $990 and the December futures price is $985. What is the effective price (after taking account of hedging) received by the company for the commodity?

Reference no: EM133111418

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