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On March 1 the spot price of a commodity is $20 and the July futures price is $19. On June 1 the spot price is

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On March 1 the spot price of a commodity is $20 and the July futures price is $19. On June 1 the spot price is $24 and the July futures price is $23. A company entered into a futures contract on March 1 to hedge the purchase of the commodity on June 1. It closed out its position on June 1. What is the effective price paid by the company for the commodity? A. $24 B. $21 C. $20 D. $19

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