Golddiggers,Inc. ,mines gold and sells refined,pure gold in the world market.To hedge some of its price risk,the company can:
A) short gold futures to hedge input risk
B) long gold futures to hedge output risk
C) short gold futures to hedge output risk
D) long gold futures to hedge input risk
E) There's no suitable contract that Golddiggers can use for hedging purposes.
Correct Answer:
Verified
Q5: The holder of a long forward contract
Q6: •A US company has bought a machine
Q7: Which of the following is NOT a
Q8: Settlement of a futures trade:
A) takes place
Q9: •A US company has bought a machine
Q11: The open interest on a futures contract
Q12: Suppose that July gold futures just become
Q13: You manufacture silver jewelry.To hedge some of
Q14: The main distinction between a forward and
Q15: Which statement is INCORRECT about futures contracts?
A)
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