As a gold producer you need to hedge one year's production at a time (current production is 2,700 oz/month). The following futures contracts (100 oz each) are available: Contract month Price # of contracts Jan 1255 Apr 1262 Aug 1269 Dec 1279 The current market price is $1,251. Note the structure of the hedge and the number of contracts required for each contract period. Should you consider hedging less than 100% of the production - if so, then why and how much?