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Posted previously but it was never answered On Jan 1 2016, I bought two Dec 2017 orange juice forward contracts at $5 per contract. The

image text in transcribedPosted previously but it was never answered

On Jan 1 2016, I bought two Dec 2017 orange juice forward contracts at $5 per contract. The size of each contract is 1 gallon of orange juice. There is no margin requirement for these forward contracts and they are only settled at maturity. When I purchased the forward contracts, the spot market price of orange juice is $4.5 per gallon. On Jan 1 2016, I paid dollars for the contract. On Jan 1 2016, I received gallons of orange juice. In Nov 2017, the price of orange juice in the spot market jumped from $4.5 to $6 per gallon In Nov 2017, I received a cash flow of dollars. On the delivery day in Dec 2017, I paid dollars. On the delivery day in Dec 2017, I gallons of orange juice received On Jan 1 2016, I bought two Dec 2017 orange juice forward contracts at $5 per contract. The size of each contract is 1 gallon of orange juice. There is no margin requirement for these forward contracts and they are only settled at maturity. When I purchased the forward contracts, the spot market price of orange juice is $4.5 per gallon. On Jan 1 2016, I paid dollars for the contract. On Jan 1 2016, I received gallons of orange juice. In Nov 2017, the price of orange juice in the spot market jumped from $4.5 to $6 per gallon In Nov 2017, I received a cash flow of dollars. On the delivery day in Dec 2017, I paid dollars. On the delivery day in Dec 2017, I gallons of orange juice received

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