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A jeweler has 1000 oz of gold. She is expected to use the gold to make jewelry to sell in 3 months. She is worried
A jeweler has 1000 oz of gold. She is expected to use the gold to make jewelry to sell in 3 months. She is worried about fluctuations in the gold price. What are the futures position she needs to take to be hedged against gold price risk? We know that each gold futures contract represents 100oz of gold. A. Long 1000 gold futures B. Short 1000 gold futures C. Long 10 gold futures D. Short 10 gold futures
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