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A gold-mining firm is concerned about short-term volatility in its revenues. Gold currently sells for...

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Finance

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A gold-mining firm is concerned about short-term volatility in its revenues. Gold currently sells for $1,045 an ounce, but the price is extremely volatile and could fall as low as $965 or rise as high as $1,125 in the next month. The company will bring 1,000 ounces to the market next month. (Enter your answers in millions rounded to 2 decimal places.) a. What will be total revenues if the firm remains unhedged for gold prices of $965, $1,045, and $1,125 an ounce? Total Revenue Gold Price per Ounce $ 965 $ 1,045 $ 1,125 million million million b. The futures price of gold for delivery one month ahead is $1,305. What will be the firm's total revenues at each gold price if the firm enters into a one-month futures contract to deliver 1,000 ounces of gold? Total Revenue Gold Price per Ounce $ 965 $ 1,045 $ 1,125 million million million c. What will total revenues be if the firm buys a one-month put option to sell gold for $1,045 an ounce? The put option costs $115 per ounce. Total Revenue Gold Price per Ounce $ 965 million $ 1,045 million $ 1,125 million

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