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Question 2 a ) An oil futures contract requires the long trader to buy 1 , 0 0 0 barrels of oil. A trader buys

Question 2
a) An oil futures contract requires the long trader to buy 1,000 barrels of oil. A trader buys one November oil futures contract at a price of $50 per barrel. Theoretically, what is the maximum loss this long trader can have?
b) Another trader sells one November oil futures contract. Theoretically, what is the maximum loss this short trader can have?
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