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Economics

After an extensive analysis of political currents in Central and South America, you conclude that coffee prices will be lower in the future. The current futures price for coffee is $2.10 and each contract is for 37,500 pounds of coffee.

a) Would you enter a long or short futures position?

b) Suppose that you decide to enter into a 10-contract position. What would be your profit if your analysis is correct and the futures price falls to $1.90?

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Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M91231955

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