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 $752 per ounce,what is the cash flow to the producer?
A) -$2000
B) $2000
C) $0
D) -$52,000
E) $52,000
Correct Answer:
Verified
Correct Answer:
Verified
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