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Suppose you are a natural gas seller, selling physical natural gas in the spot market to a pipeline in Henry Hub (which is the same

Suppose you are a natural gas seller, selling physical natural gas in the spot market to a pipeline in Henry Hub (which is the same location as the delivery of the natural gas futures contracts). You hedge by locking in $3.50 per MMBtu with a futures contract. How will the hedge work, if by maturity day spot price of natural gas is ST?

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