A gold-mining firm is concerned about short-term volatility in its revenues. Gold currently sells for $1,195 an ounce, but the price is extremely volatile and could fall as low as $1,115 or rise as high as $1,275 in the next month. The company will bring 1,000 ounces to the market next month. (Enter your answers in millions rounded to 2 decimal places.)

a. What will be total revenues if the firm remains unhedged for gold prices of $1,115, $1,195, and $1,275 an ounce?

Gold Price per Ounce	Total Revenue
$1,115	$ _____________ million
$1,195	$ _____________million
$1,275	$ _____________ million

b. The futures price of gold for delivery one month ahead is $1,303. What will be the firms total revenues at each gold price if the firm enters into a one-month futures contract to deliver 1,000 ounces of gold?

Gold Price per Ounce	Total Revenue
$1,115	$ ______________ million
$1,195	$ ______________ million
$1,275	$ ______________ million

c. What will total revenues be if the firm buys a one-month put option to sell gold for $1,195 an ounce? The put option costs $117 per ounce.

Gold Price per Ounce	Total Revenue
$1,115	$ ______________ million
$1,195	$ ______________ million
$1,275	$ ______________ million