Anticipating a decline in copper prices, the long-term production of copper was hedged by selling 100 lots of futures.

Results: Affected by the copper price, the spot market lost 500 * (16100-15600) = 250,000 yuan.

In the futures market, the profit from selling futures is100 * 5 * (16100-10) = 245,000 yuan.

The profit of the futures market makes up for the loss of the spot market (the decrease of income), but because the price change of the futures market is smaller than that of the spot market, it cannot be completely made up.

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