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A company will buy 1 0 0 0 units of a certain commodity in one year. It decides to hedge 8 0 % of its

A company will buy 1000 units of a certain commodity in one year. It decides to hedge 80% of its exposure using futures contracts. The current Spot price is $100 the one year futures price of the commodity is $90. If the spot price and the futures price in one year turn out to be $112 and $110, respectively.
a. What is the effective price per unit the company will pay for the hedged commodities? 2pts.
b. Overall, what is the average unit price paid for the commodity? 2pts
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