The bakery gains or losses from its futures position

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Reference no: EM131059629

A bakery enters into 50 long wheat futures contracts (each contract is for 50,000 bushels) on the CBoT (Chicago Board of Trade) at a futures price of $3.52/bushel. It closes out the contracts at maturity. The spot price at this time is $3.59/ bushel. Ignoring interest, what are the bakery's gains or losses from its futures position?

Reference no: EM131059629

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The bakery gains or losses from its futures position : A bakery enters into 50 long wheat futures contracts (each contract is for 50,000 bushels) on the CBoT (Chicago Board of Trade) at a futures price of $3.52/bushel. It closes out the contracts at maturity. The spot price at this time is $3.59/ bushel...

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