Assume that in March a farmer and a baker enter into a forward contract on...
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Finance
- Assume that in March a farmer and a baker enter into a forward contract on 1,000 bushels of wheat at a price of $3.00 per bushel for delivery in September. In September the spot price of wheat is $2.50 per bushel. Who has profited from entering into the forward contract and who has lost? How much is the gain and how much is the loss?
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