On April 1st the price of the gold is $1000 and the December futures price is $1015. On November 1st the price of the gold is $980 and the December futures price is 981$. A gold producer entered into...

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On April 1st the price of the gold is $1000 and the December futures price is $1015. On November 1st the price of the gold is $980 and the December futures price is 981$. A gold producer entered into a December futures contract on April 1st to hedge the sale of gold on November 1st. It closed out its position on November 1st. After taking account of the cost of hedging, what is the effective price received by the company for the gold?

Answered Same DayDec 21, 2021

Answer To: On April 1st the price of the gold is $1000 and the December futures price is $1015. On November 1st...

Robert answered on Dec 21 2021

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On April 1st the price of the gold is $1000 and the December futures price is $1015. On November
1st the price of the gold is $980 and the December futures price is 981$. A gold producer entered
into a December futures contract on April 1st to hedge the sale of gold on November 1st. It closed
out its position on November 1st. After taking account of the cost of hedging, what is the effective
price received by the company for the gold?
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On April 1st the price of the gold is $1000 and the December futures price is $1015. On November 1st the price of the gold is $980 and the December futures price is 981$. A gold producer entered into...

Answer To: On April 1st the price of the gold is $1000 and the December futures price is $1015. On November 1st...

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