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your company is a copper producer, and you just signed a contract to sell 1 million pounds of copper for the market price in December
your company is a copper producer, and you just signed a contract to sell 1 million pounds of copper for the market price in December of this year. You enter a short position on 40 December futures contracts (copper futures contracts are 25000 pounds) at a price of $2.67 per pound.
What happens if copper is $4.50 per pound on the day of sale?
what happens if it is $1.50?
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