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options 1 purchase / sell loss/profit 5. Single stock futures contracts 1. 2...

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Finance

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options 1 purchase / sell

loss/profit

5. Single stock futures contracts 1. 2 . STEP: 2 of 2 Suppose that Lorenzo forecasts that Cliffway Telecomms's stock price is going to increase considerably over the next three months and that he wants to purchase futures contracts on their stock prior to the price increasing. If Lorenzo decides to purchase futures on 900 shares (where the size of one contract is 100 shares), and the current price per share is $15, then he will have received $ in proceeds from the futures contracts. Suppose after three months, Cliffway Telecomms's stock is $16 per share. If Lorenzo wants to offset his position, he would futures contracts on Cliffway Telecomms shares, resulting in a total of $ Assume that there were no transaction costs and that the values you enter are all positive numbers.) (Hint

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