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Copper prices can be volatile, and futures contracts can help mitigate price risk for various market participants, including miners, refiners, smelters, traders, banks, and consumers. For example, a cable manufacturer agrees to purchase 50,000 pounds of copper cathodes from a smelter for December delivery at the December price. To hedge against price fluctuations, the cable manufacturer buys two December copper futures contracts at a price of 2.29. When the spot market price in November is 2.2245, the expected total payment for the copper is calculated by multiplying the spot price by the quantity (2.2245 × 2 × 25,000), helping to ensure price stability despite market volatility.