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You forecast a cold, rainy summer so you expect wheat harvests to be poor and prices to rise. To profit from your expectation, you take
You forecast a cold, rainy summer so you expect wheat harvests to be poor and prices to rise. To profit from your expectation, you take a long position in 15 wheat futures contracts at a futures price of $6.86 per bushel (each contract is for 5,000 bushels). You execute an offset trade near the maturity date of the futures contract at a price per bushel of $10.72. What is your cumulative profit? $274,500 -$289,500 $289,500 -$274,500
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