You just heard a news story aboutmad cow diseasein a neighboring country, and you believe that feeder

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 You just heard a news story about mad cow disease in a neighboring country, and you believe that feeder cattle prices will rise dramatically in the next few months as buyers of cattle shift to U.S. Suppliers. Someone else believes that prices will fall int eh next few months because people will be afraid to eat beef. You go to CME and find out those feeder cattle futures for delivery in April are currently quoted at 88.8. The contract size is 50,000 lbs. What is the market value of the contract?

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Fundamentals of Investing

ISBN: 978-0133075359

12th edition

Authors: Scott B. Smart, Lawrence J. Gitman, Michael D. Joehnk

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