Goldmember Corp. anticipates a future purchase of 20,000 oz. of gold in two months for its gold plating business. Which of the following is the correct hedging strategy? Assume that gold futures prices are fair in the sense that they equal their respective no-arbitrage values.

Also assume that today is February 28 and the purchase is anticipated for April 28. Currently, NYMEX has gold futures contracts listed with the following delivery months: March, April, May, and June.

Group of answer choices

Take a long position in 100 May gold futures contracts.

Take a short position in 200 April gold futures contracts.

Take a long position in 200 April gold futures contracts.

Take a short position in 100 May gold futures contracts.

Take a short position in 200 May gold futures contracts.

Take a long position in 200 May gold futures contracts.