A gold mining firm is concerned about short-term volatility in its revenues. Gold currently sells for $1,620 an ounce, but the price is extremely volatile and could fall as low as $1,500 or rise as high as $1,700 in the next month. The company will bring $4,000 ounces to the market next month.
a.	What will total revenues be if the firm remains unhedged for gold prices of $1,500, $1,620, and $1,700 an ounce?
			Gold price
			$1,500		$1,620	$1,700
	Total revenues		$		$	$
b.	The futures price of gold for 1-month-ahead delivery is $1,630. What will be the firms total revenues at each gold price if the firm enters a 1-month futures contract to deliver $4,000 ounces of gold?

			Gold price
			$1,500		$1,620	$1,700
	Total revenues		$		$	$

c.	What will total revenues be if the firm buys a 1-month put option to sell gold for $1,620 an ounce? The puts cost $8 per ounce.

			Gold price
			$1,500		$1,620	$1,700
	Total revenues		$		$	$