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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 10 futures contracts for 1000 kg of cattle (each) in September at PLN 4.99/
kg. Delivery is scheduled for 15 December. The commission on the contract is 25 PLN. Please calculate
the profit/loss of our brave investor-farmer at the time of delivery of the contract (maturity) if:
a) the market price falls to 4.96 PLN/kg;
b) the market price is set at 5.05 PLN/kg.
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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