A Gold Mining Firm Sells Futures Contracts Worth 1000 Ounces

question 32

Multiple Choice

A gold mining firm sells futures contracts worth 1000 ounces at a price of $700 per ounce for maturity one year from today.If gold futures prices increase to $752 per ounce,what is the cash flow to the producer?

• A)-$2000
• B)$2000
• C)$0
• D)-$52,000
• E)$52,000

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Definitions:

South End Gangs

Localized criminal organizations operating in the South End area of a city, often involved in activities such as drug trafficking, violence, and extortion.

Anti−Stamp Act Demonstrations

Protests that took place in the American colonies in 1765 against the Stamp Act imposed by the British government, which required colonists to purchase a stamp for every piece of paper they used.

Gang Members

Individuals who are part of an organized group or gang that often engages in criminal activities and operates based on a shared identity or territory.

Townshend Duties

A series of British acts of Parliament passed during 1767 and 1768 imposing duties on colonial imports as a means of raising revenue.