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After an analysis of political currents in Central and South America, you conclude that future coffee prices will be lower than currently indicated by futures
After an analysis of political currents in Central and South America, you conclude that future coffee prices will be lower than currently indicated by futures prices. Would you go long or short? Analyze the impact of a swing in coffee prices of 10 cents per pound in either direction if you have a 10-contract position, where each contract calls for delivery of 37,500 pounds of coffee.
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