Suppose that last month you purchased eight January crude oil futures contracts at a quoted price of42.38.

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Suppose that last month you purchased eight January crude oil futures contracts at a quoted price of42.38. These contracts are based on 1,000 barrels and quoted in dollars per barrel. Assume the actual price per barrel is $44.22 in January.

How much did you gain or lose by hedging your position?

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Microeconomics An Intuitive Approach with Calculus

ISBN: 978-0538453257

1st edition

Authors: Thomas Nechyba

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Posted Date: Dec 16, 2023 03:29 AM

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Suppose that last month you purchased eight January crude oil futures contracts at a quoted price of42.38.

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Expert Answer:

1 Calculate the total cost of the futures contracts You purchased eight contractsand ea... View the full answer

Microeconomics An Intuitive Approach with Calculus

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