Please answer the below questions.
Which one of the following is not associated with forward contracts? Multiple Choice Making delivery Taking delivery Deliverable instrument Cash transaction Delayed delivery If the producer of a product has entered into a fixed price sale agreement for that output, the producer generally faces: Multiple Choice a nice steady profit because the output price is fixed. an uncertain profit if the input prices are volatile. This risk can be reduced by a short hedge. an uncertain profit if the input prices are volatile. This risk can be reduced by a long hedge a modest profit if the input prices are stable. This risk can be reduced by a long hedge. a modest profit if the input prices are stable. This risk can be reduced by a short hedge. You are long 10 gold futures contracts, established at an initial settle price of $1,610 per ounce, where each contract represents 100 ounces. Over the subsequent four trading days, gold settles at $1,617, $1,607, $1,616, and $1,625, respectively. a. Calculate the profit or loss for each trading day. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) b. Compute your total profit or loss at the end of the trading period. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) a. Day 1 Day 2 Day 3 Day 4 b. Total profit/loss Which one of the following is not associated with forward contracts? Multiple Choice Making delivery Taking delivery Deliverable instrument Cash transaction Delayed delivery If the producer of a product has entered into a fixed price sale agreement for that output, the producer generally faces: Multiple Choice a nice steady profit because the output price is fixed. an uncertain profit if the input prices are volatile. This risk can be reduced by a short hedge. an uncertain profit if the input prices are volatile. This risk can be reduced by a long hedge a modest profit if the input prices are stable. This risk can be reduced by a long hedge. a modest profit if the input prices are stable. This risk can be reduced by a short hedge. You are long 10 gold futures contracts, established at an initial settle price of $1,610 per ounce, where each contract represents 100 ounces. Over the subsequent four trading days, gold settles at $1,617, $1,607, $1,616, and $1,625, respectively. a. Calculate the profit or loss for each trading day. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) b. Compute your total profit or loss at the end of the trading period. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) a. Day 1 Day 2 Day 3 Day 4 b. Total profit/loss
