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1-Stan has sold a futures contract on Treasury bills that specified a price of 97.42. When the settlement date arrived, Stan closed out his position

1-Stan has sold a futures contract on Treasury bills that specified a price of 97.42. When the settlement date arrived, Stan closed out his position by purchasing a Treasury bills futures contract for 98.39. Ignoring transaction costs, determine Stans profit or loss.

Would a long hedge be more appropriate than a short hedge for AFB? Why or why not?

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