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The world market for gold is priced in US dollars. An Australian gold producer is exposed to the gold price declining and also the AUD/USD

The world market for gold is priced in US dollars. An Australian gold producer is exposed to the gold price declining and also the AUD/USD exchange rate becoming unfavourable. i) Discuss the pros and cons of using a rolling (stacking) futures hedge versus a strip futures hedge of the currency exposure. ii) How might uncertainty over the size of the gold reserves and rate of production impact the decision to hedge the gold price?

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