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A 3-Month Futures Contract on Gold Is Priced at $1,200

Question 32

Multiple Choice

A 3-month futures contract on gold is priced at $1,200 per troy ounce when the contract is initiated.If the price of gold rises every day over the 3-month period,then when the contract is settled,the buyer will ________ and the seller will ________.


A) lose; gain
B) gain; lose
C) gain; break even
D) gain; gain
E) lose; lose

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