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3. A trader enters into a short cotton futures contract when the futures price is 69 cents per pound. The contract is for the delivery

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3. A trader enters into a short cotton futures contract when the futures price is 69 cents per pound. The contract is for the delivery of 50,000 pounds. How much does the trader gain or lose if the cotton price at the end of the contract is (a) 68.20 cents per pound; (b) 71.30 cents per pound

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