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5. On July 2022, a mining company discovered a small deposit of gold. It will take six months to construct the mine. The gold will
5. On July 2022, a mining company discovered a small deposit of gold. It will take six months to construct the mine. The gold will then be extracted. A total of 30,000 ounces are expected to be produced in February 2023 and in June 2023. Futures contracts on gold are available on the New York Mercantile Exchange. There are delivery months every two months from August 2022 to December 2023. Each contract is for the delivery of 100 ounces. Discuss how the mining company might use futures for hedging
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