BHP Billiton is the world's largest mining firm. BHP expects to produce 2 billion pounds of copper next year, with a production cost of $0.80 per pound. a. What will be BHP's operating profit from copper next year if the firm enters into a contract to supply copper to end users at the price of $1.4 per pound? b. What would be profit/loss from the hedge if the price of copper next year is $1.20 or $1.75 per pound? Sketch profit/ loss profile as the function of market price Profit / Loss Copper Price