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A Polish farmer buys 1 0 futures contracts for 1 0 0 0 kg of cattle ( each ) in September at PLN 4 .
A Polish farmer buys futures contracts for kg of cattle each in September at PLN
kg Delivery is scheduled for December. The commission on the contract is PLN Please calculate
the profitloss of our brave investorfarmer at the time of delivery of the contract maturity if:
a the market price falls to PLNkg;
b the market price is set at PLNkg
Does the amount of profit loss at the end of the contract change depending on the type of
contract: forward futures?
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