Problem

26. A bakery enters into 50 long wheat futures contracts on the CBoT at a futures price of...

26. A bakery enters into 50 long wheat futures contracts on the CBoT at a futures price of $3.52/bushel. It closes out the contracts at maturity. The spot price at this time is $3.59/ bushel. Ignoring interest, what are the bakery's gains or losses from its futures position?

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Solutions For Problems in Chapter 2