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What is the effective sale price for the grower

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A grower is intending to sell cotton at a certain future date and enters a hedge using a futures contract for the delivery of 50,000 pounds of cotton at a futures price of $0.50 per pound. The current spot price is $0.45 per pound. Before expiry the contract is closed out when the futures price is $0.55 and the spot price is $0.52. What is the effective sale price for the grower?

Reference no: EM132668483

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