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6. Assume that in March a farmer and a baker enter into a forward contract on 100,000 bushels of wheat at a price of $5

6. Assume that in March a farmer and a baker enter into a forward contract on 100,000 bushels of wheat at a price of $5 per bushel for delivery in September. In September the spot price of wheat is $5.2 per bushel. Who has profited from entering into the forward contract, by how much?

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