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Brenda Baruda Has a Futures Contract to Sell Corn at $2.22

Question 55

Multiple Choice

Brenda Baruda has a futures contract to sell corn at $2.22 per bushel.The contract is about to expire and the spot (cash) price of corn is currently $2.00 per bushel.We would expect Brenda to:


A) close out the contract at a gain.
B) close out the contract at a loss.
C) deliver under the contract at a gain.
D) deliver under the contract at a loss.

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