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Sugar is currently selling for $0.201 a pound while the 6-month futures price is $0.205. You take a short position in the 6-month sugar futures.
Sugar is currently selling for $0.201 a pound while the 6-month futures price is $0.205. You take a short position in the 6-month sugar futures. Which one of the following prices of sugar per pound 6 months from now would cause you the greatest loss?
A. $0.208
B. $0.181
C. $0.198
D. $0.205
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