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A speculator enters a futures contract for September 1 9 th delivery on February 2 nd . The contract is for 6 2 , 5
A speculator enters a futures contract for September th delivery on February nd The contract is for The futures exchange rate is $ per pound. He believes that the spot rate for pounds on September th will be $ per pound. The margin requirement initial performance bond is of contract value.
If the spot rate for pounds on September th is lower than the futures exchange rate, how much would he gainlose on the futures speculation? Enter amount with positive sign for gain, negative for loss
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