A Gold Mining Firm Sells Futures Contracts Worth 1000 Ounces

question 88

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 $702 per ounce,what is the cash flow to the producer?

• A)-$2000
• B)$2000
• C)$0
• D)$700,000
• E)$702,000

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Definitions:

Silence

The absence of verbal communication, which can be a powerful form of non-verbal communication or a strategy used in various contexts.

Downward Communication

A form of communication that flows from higher levels of the organizational hierarchy to lower levels, typically involving directives, instructions, and information dissemination.

Chain of Command

The formal line of authority within an organization, specifying the hierarchy of reporting relationships from top management to the lowest levels.

Relational Testing

The process of examining and evaluating the dynamics and health of interpersonal relationships.