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Cole's Jewelers purchased a futures contract on 2 0 0 ounces of gold to be exchanged 3 months from now. As the contract holder, Cole's
Cole's Jewelers purchased a futures contract on ounces of gold to be exchanged months from now. As the contract holder, Cole's Jewelers:
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has the right, but not the obligation, to purchase ounces of gold months from now.
has the obligation to purchase ounces of gold at the market price months from now.
has an obligation to buy ounces of gold but only if the price of gold Increases within the next months.
Is expecting the price of gold to decrease and thus is locking in a selling price.
will profit if the price of gold is higher three months from now.
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