1. Suppose CDE mines copper with fixed costs of $0.5/lb and variable costs of $0.4/lb. The 1 year forward price for copper is $1/lb. If CDE does nothing to manage risk. What is it's profit 1 year from now, per pound of copper, if the price of copper in one year is $0.9 or $1.0, or $1.1?

2. Suppose CDE mines copper with fixed costs of $0.5/lb and variable costs of $0.4/lb. If CDE decides to sell forward its excepted copper production at the 1 year forward price, what is itss profit 1 year from now, per pound of copper, if the price of copper in one year is $0.9, or $1.0, or $1.1?

3. Assume the continuously compounded interest rate is 6%, If CDE decides to buy a $0.95 strike put option for $0.0178, what is its profit 1 year from now, per pound of copper, if the price of copper in one year is $0.9, or $1.0, or $1.1?