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An aluminium buckets producer expects to buy 6 0 0 tons of aluminium in 3 months time. To hedge the cost of the input the

An aluminium buckets producer expects to buy 600 tons of aluminium in 3 months time. To hedge the cost of the input the producer goes long futures contracts for 500 tons of aluminium at the cost of $3,000 per ton. In 3 months time the price of aluminium has fallen to $2,592 per ton. What will be the total cost of the 600 tons of aluminium (including any money received or spent to settle the futures contracts)? Assume all transaction costs are zero.

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