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A company will buy 1,730 units of a certain commodity in one year. It decides to hedge 0.82% of its exposure using futures contracts. Spot

A company will buy 1,730 units of a certain commodity in one year. It decides to hedge 0.82% of its exposure using futures contracts. Spot price and 1-year futures price are currently $103 and $98. If the spot price and the futures price in one year turn out to be $99 and $97, respectively (the futures contract is NOT at expiration). What is the average price paid for the commodity?

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