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1. A trader enters into a short cotton features contract with the delivery price 50 cents per pound. The contract is for the delivery
1. A trader enters into a short cotton features contract with the delivery price 50 cents per pound. The contract is for the delivery of 50,000 pound. How much does the trader gain or lose if the cotton price at the end of the contract is (a) 48.20 cents per pound and (b) 51.30 cents per pound? [10 marks]
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