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This is oil futures. Now is time 1 . Futures price F 1 = 8 0 . Assume spot price at time 2 , S

This is oil futures. Now is time

1 .

Futures price F

1 = 80 .

Assume spot price at time

2,

2 = 85,

and futures price at time

2,

2 = 84 .

What is the effect price when an investor has to close her position at time

2 ?

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