Question 1: Current interest rates are 5% in Canada and 4% in the united states while the Canadian US exchange rate is 1 USD equals 1.35 CAD. A gold producing company in Canada sells their gold on the us futures market that is currently priced with a spot price of $1500 /oz USD. The company will sell 4,000 oz each month for the next two years. 1) what is the fair monthly futures price for gold given this information (assume no convenience yield. 2) The firm wants to hedge as much market exposure as possible, how would you advise them to do this and why? Any special considerations? 3) Assuming the company hedged all market risk what would be the prices they could lock in for each month and thus what would their monthly cashflows be each month for the next two years