Problem 7 A gold mining company, ABC, is selling assets to a potential bidder XYZ. The value of these assets depends on the price of gold: the higher the price, the higher the value. The bidder's lender is doing conservative and cautious to lend money for the purchase. What action can make the deal more attractive to the lender? a. XYZ enters a forward contract to make future delivery of gold b. ABC enters a forward contract to take future delivery of gold XYZ enters a forward contract to take future delivery of gold d. ABC enters a forward contract to make future delivery of gold C.

A gold mining company, ABC, is selling assets to a potential bidder XYZ. The value of these assets depends on the price of gold: the higher the price, the higher the value. The bidder's lender is conservative and cautious to lend money for the purchase. What action can make the deal more attractive to the lender? a. XYZ enters a forward contract to make future delivery of gold b. ABC enters a forward contract to take future delivery of gold c. XYZ enters a forward contract to take future delivery of gold d. ABC enters a forward contract to make future delivery of gold