8. Rio Red Co, the leading global mining group, wants to lock in a price...
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8. Rio Red Co, the leading global mining group, wants to lock in a price to sell its future production. For that, the firm sells 300 Copper Future contracts with expiration 18-months from now at $4.50 a pound. Each contract represents 25,000 pounds of Cooper. Suppose that the spot price of the cooper is $5.15 a pound when the future contract expires, what is the firm's profit/loss with the future market?
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