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Suppose you enter into a forward contract to sell 15,000 pounds of orange juice in...

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Finance

Suppose you enter into a forward contract to sell 15,000 pounds of orange juice in January 2023 at a forward price of 122.9 cents per pound. If the spot price of orange juice on maturity date turns out to be 127.0 cents per pound, what would be your payoff per pound at maturity as the short position in this contract? Show one decimal place. [Hint: The answer may be negative or positive depending on the comparison of the forward and spot prices]

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