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Today the spot rate between US dollars ( USD ) and Australian dollars ( AUD ) is USD 1 = AUD 1 . 6 2

Today the spot rate between US dollars (USD) and Australian dollars (AUD) is USD1=AUD1.6290, and the current spot price of gold is USD1,500 per ounce. You are an Australian gold miner and expect to have 10,000 ounces of gold ready for sale in 3 months time. You decide not to hedge your exposure. When you are ready to sell the gold in 3 months, the spot price of gold is USD1,300 per ounce, and the spot exchange rate is USD1= AUD1.5000.
1. The Australian gold miner is exposed to the risk of the gold price Answer 1 Question 5
2. The Australian gold miner is exposed to the risk of the USD Answer 2 Question 5
3. In three months time, when the Australian gold miner sells 10,000 ounces of gold at the spot price for gold, the revenue received in AUD will be AUD Answer 3 Question 5
million. Give your answer in millions to two decimal places or your answer will be incorrect.

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