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A coffee producer is worried about the price of coffee beans increasing in the year to come, and therefore buys a futures contract for coffee
A coffee producer is worried about the price of coffee beans increasing in the year to come, and therefore buys a futures contract for coffee dated a year from now for $1000 per ton. The current price of coffee is $920 per ton, and a year later coffee costs $1200 per ton. What is the final effect of this hedge? Select one: She lost $200. She saved $200 She lost $80. O She broke even
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