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On January 1 oil spot price is $50 and its April futures price is $49. On March 1 the spot price is $54 and the

On January 1 oil spot price is $50 and its April futures price is $49. On March 1 the spot price is $54 and the April futures price is $53.50. A company entered into futures contracts on January 1 to hedge its purchase of the oil on March 1. It closed out its position on March 1. What is the effective price (after taking account of hedging) paid by the company?

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