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6. You own a mine that produces gold and you enter into long futures contracts equal in value to the gold in your company's inventory.
6. You own a mine that produces gold and you enter into long futures contracts equal in value to the gold in your company's inventory. Draw a diagram showing (a) your business risk, (b) the payoffs from the futures contract, and (c) the net position, as they relate to the price of gold at the expiration of the futures contract. (6 points)
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