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We Have a Futures Contract for the Purchase of 10,000

Question 10

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We have a futures contract for the purchase of 10,000 bushels of wheat at $3.00 per bushel. If the price of wheat were to increase to $3.50, explain what happens to the parties involved in the contract in terms of marking to market. Be sure to identify who is long and short and specifically how much is transferred.

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The buyer of the contract, the long posi...

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