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A gold-mining firm is concerned about short-term volatility in its revenues. Gold currently sells for $1,300 an ounce, but the price is extremely volatile and
A gold-mining firm is concerned about short-term volatility in its revenues. Gold currently sells for $1,300 an ounce, but the price is extremely volatile and could fall as low as $1,220 or rise as high as $1,380 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 $1,220, $1,300, and $1,380 an ounce?
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