Todays spot price for gold is $1000. The 90 day forward price is also $1000. Goldbug Co. sells gold from inventory and buys forward an equivalent quantity of gold. Goldbug Co. invests the funds from the sale of the gold in a government insured bank certificate of deposit for 90 days. The bank pays 4% interest on the certificate of deposit. Goldbug Co. is:

Hedging.

Speculating.

Locking in an arbitrage profit.