You enter into a cash settled futures contract to sell 200 barrels of oil in 6 months

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You enter into a cash settled futures contract to sell 200 barrels of oil in 6 months at a price of $25 per barrel. Upon expiry, oil is selling for $30 per barrel in the market.

How will the futures contract be settled?

Related Book For answer-question

Microeconomics An Intuitive Approach with Calculus

ISBN: 978-0538453257

1st edition

Authors: Thomas Nechyba

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Posted Date: Apr 03, 2023 02:58 AM

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You enter into a cash settled futures contract to sell 200 barrels of oil in 6 months

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Microeconomics An Intuitive Approach with Calculus

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