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You are a manufacturer of gold jewelry holding 100 troy ounces of gold. To protect the value of the gold holding, you sold a futures
You are a manufacturer of gold jewelry holding 100 troy ounces of gold. To protect the value of the gold holding, you sold a futures contract for 100 troy ounces of gold with a delivery date 90 days from today. The futures contract is priced $1,218 per ounce today. Assume the futures price falls to $1,216 tomorrow. What will be daily settlement for this contract tomorrow?
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you have sold a futures contract if prices fall you have a positive payoff ...
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Investment Analysis and Portfolio Management
Authors: Frank K. Reilly, Keith C. Brown
10th Edition
538482109, 1133711774, 538482389, 9780538482103, 9781133711773, 978-0538482387
