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16. On March 1 a commodity's spot price is $110 and its June futures price is $112. On May 1 the spot price is $100

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16. On March 1 a commodity's spot price is $110 and its June futures price is $112. On May 1 the spot price is $100 and the June futures price is $104. A company entered into futures contracts on March 1 to hedge its sale of the commodity on May 1. The effective price that the company receives for the commodity after taking the hedge into account is: a. $110. b. $112. c. $108

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