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QUESTION : An investor wants to buy 100 oz gold at 400 per ounce in 6 months time by buying a futures contract. Assume that
QUESTION :
An investor wants to buy 100 oz gold at 400 per ounce in 6 months time by buying a futures contract. Assume that the price of gold increases to $440 per ounce in 6 months. Using the futures contract, show the final cost of the gold to the investor. Use the information above assume that the price of gold falls to $360 per ounce in 6 months. Using the futures contract, show the final cost of the gold to the investor.
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