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A company will buy 1000 units of a certain commodity in one year. It decides to hedge 75% of its exposure using futures contracts. The
A company will buy 1000 units of a certain commodity in one year. It decides to hedge 75% of its exposure using futures contracts. The spot price and the futures price are currently 96.1 and 89.5, respectively. If the spot price and the futures price in one year turn out to be 109.8 and 107.7, respectively. What is the average price paid for the commodity
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