Question
You are a manufacturer of gold jewelry holding 100 troy ounces of gold. To protect the value of the gold holding, you sold a futures
You are a manufacturer of gold jewelry holding 100 troy ounces of gold. To protect the value of the gold holding, you sold a futures contract for 100 troy ounces of gold with a delivery date 90 days from today. The futures contract is priced $1,218 per ounce today. Assume the futures price falls to $1,216 tomorrow. What will be daily settlement for this contract tomorrow?
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Fundamentals of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
11th edition
324422870, 324422873, 978-0324302691
