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Question
Assume that the hedge was placed as indicated in a prior question, and that the BP futures contract is trading at $1.62/≤. Assume the futures contract has some days remaining to maturity. What will be the gain or loss on the hedge if it is unwound at this price?
A. $4,280,000 loss.
B. $4,000,000 loss.
C. $4,280,000 gain.
D. $4,000,000 gain.
E. $6,400,000 gain.
Answer
This answer is hidden. It contains 131 characters.
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