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One orange juice futures contract is on 15,000 pounds of frozen concentrate. Suppose that in Sep 200

One orange juice futures contract is on 15,000 pounds of frozen concentrate. Suppose that in Sep 2009 a company sells a Mar 2011 orange juice futures contract for 120 cents per pound. In Dec 2009, the futures price is 140 cents; in Dec 2010 it is 110 cents and in Feb 2011, it is closed at 125 cents. The company has a December year end. What is the company’s profit or loss on the contract? How is it realized?

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