Question
Suppose that on 10-March ABC Inc. enters into a futures contract to buy 5000 bushels of wheat from XYZ Inc., both are hypothetical companies, on
Suppose that on 10-March ABC Inc. enters into a futures contract to buy 5000 bushels of wheat from XYZ Inc., both are hypothetical companies, on 30-March at price $10/bushel. If price of the wheat on 30-March is $9/bushel, then 1. The pay off of the contract will be -$1. 2. The pay off of the contract will be $1. 3. The pay off of the contract will be $5000. 4. None of the above
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Derivatives Markets
Authors: Rober L. Macdonald
4th edition
321543084, 978-0321543080
