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International Coffee House purchased a future contract to buy 1,000 lbs of coffee for $2.50 a pound in June and when June comes, coffee future

International Coffee House purchased a future contract to buy 1,000 lbs of coffee for $2.50 a pound in June and when June comes, coffee future is trading at $3.00 a pound. What is the profit or (loss) on the future?

Multiple Choice

  • $500

  • ($250)

  • ($300)

  • $400

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