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Let the spot price of gold today be $1,500 per ounce. A jewelry maker sets up a buying hedge by going long gold futures. The
Let the spot price of gold today be $1,500 per ounce. A jewelry maker sets up a buying hedge by going long gold futures. The basis is $30 today and $110 on the last day of the hedge, when the futures position is closed and gold is purchased in the spot market.
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Introduction To Corporate Finance
Authors: Laurence Booth, Sean Cleary
3rd Edition
978-1118300763, 1118300769
