Multiple Choice
A gold mining firm sells futures contracts worth 1000 ounces at a price of $700 per ounce for maturity one year from today.If gold futures prices increase to $702 per ounce,what is the cash flow to the producer?
A) -$2000
B) $2000
C) $0
D) $700,000
E) $702,000
Correct Answer:
Verified
Correct Answer:
Verified
Related Questions
Q83: An operator of an oil well has
Q85: A firm with above-average risk is more
Q86: _ costs impose several direct and indirect
Q87: Two firms can use vertical integration to
Q89: Use the table for the question(s)below.<br> <img
Q90: A firm can borrow at a floating
Q91: The six month LIBOR rate for a
Q92: A firm wishes to buy fire insurance
Q93: A(n)_ is only used to calculate coupon
Q97: What is adverse selection?