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    Hi, Could anyone give me an outline to answering the below question:
    you bought the forward contract to buy cocoa in six-months at a price of $200, the risk free interest rate continuously compounded is now 1% and the contract has three months to go and you have been approached by a broker with cocoa at $190. What might you do and how would your position differ were you transacting in a futures market?
 
 
 
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Updated: May 13, 2015

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