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28 June, 06:04

Consider the widget exchange. Suppose that each widget contract has a market value of $0 and a notional value of $100. There are three traders, A, B, and C. Over one day, the following trades occur: A long, B short, 5 contracts. A long, C short, 15 contracts. B long, C short, 10 contracts. C long, A short, 20 contracts. What is trader B's net position in the contract at the end of the day?

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  1. 28 June, 08:30
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    The trader B's net position in the contract at the end of the day is 5 long position contract

    Explanation:

    The computation of net position for the trader B is shown below:

    Net position = Long position - short position

    = 10 long position contracts - 5 short position contracts

    = 5 long position contract

    The other traders are irrelevant because we have to find out the net income for traders B only. Hence, all other information is ignored
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