A gold mining firm is concerned about short-term volatility in its revenues. Gold currently sells for $1,050 an ounce, but the price is extremely volatile and could fall as low as $900 or rise as high as $1,200 in the next month. The company will bring $2,000 ounces to the market next month.

a . What will total revenues be if the firm remains unhedged for gold prices of $900 , $1, 050 , and $ 1, 200 an QUINCE' ?" Gold price $900 $1, 050 $1, 200 Total revenues $1 , 800, 000 0 $21 , 003 , 000 13 $2, 400, 000 0 b . The futures price of gold for 1 - month - ahead delivery is $1 , 060 . What will be the firm's total revenues at each gold price if the firm enters a 1 - month futures contract to deliver $2, 000 ounces of gold ? Gold price $900 $1, 050 $1, 200 Total revenues $2, 120, 000 0 $2, 120, 000 0 $2, 120, 000 0 C. What will total revenues be if the firm buys a 1 - month put option to sell gold for $ 1, 050 an ounce ? The puts cost $8 per ounce . Gold price $900 $1, 050 $1, 200 Total revenues $2, 100, 000 13 $2, 100, 000 13 $2, 400, 000 0