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1.1 A trader enters into a short cotton future contract when the futures price is 50 cents per pound. The contract is for delivery of

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1.1 A trader enters into a short cotton future contract when the futures price is 50 cents per pound. The contract is for delivery of 50,000 pounds. How much does the trader gain or loss if the cotton price at the end of the contract is (a) 48.20 cents per pound; (b) 51.30 cents per pound

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