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After taking this class you fancy yourself a savvy commodities investor and take a job on the Chicago Mercantile Exchange. Your first day on the job you purchase 4 contracts for pork bellies at $88.80 for delivery this coming April. This required a 10% deposit. The spot price in April is $101.20. What much equity capital did you need to make the transaction, how much money did you make (and you did make some money on this deal) and what was the return on your invested capital?

Financial Management, Finance

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