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Contract size-5,000 bushels
Eric wants to buy September soybean futures because he believes that soybean prices are going to rise. He enters an order to buy one contract at $8.7725/bushel. The brokerage firm is going to charge Eric $35 commission to trade the contract. Assume in two months, September soybean futures are trading at $8.8175/bushel. What is Eric’s net profit/loss situation in two months assuming he did make the trade?
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