Hedging using futures and options, working capital, after tax yield, borrowing rates, floats
Question 1 A gold-mining firm is concerned about short-term volatility in its revenues. Gold currently sells for $300 an ounce, but the price is extremely volatile and could fall as low as $280 or rise as high as $320 in the next month. The company will bring 1,000 ounces to the market next month. a. What will be total reven