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3. A trader enters into a short cotton futures contract when the futures price is 50 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 50 cents per pound. The contract is for the delivery of 50,000 pounds. If held until expiration 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

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