A maker of breakfast cereals has contracted to buy 100,000 bushels of wheat for $8.50 a bushel at the end of October.On the delivery date,the spot price of wheat is $8.70 per bushel.Which of the following is true?
A) The seller of the contract has $20,000 profit.
B) The buyer of the contract has a $20,000 loss.
C) The buyer of the contract has a $20,000 profit
D) Both A and B are true
Correct Answer:
Verified
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