Kinross is a major Gold Producer. They are expecting a production of 500,000 oz of Gold in 6 months (they are long Gold). The Forward is : $1,800/ troy oz

Kinross Purchases a 6 month Gold Put Struck at $1,800/ oz , for $80 per oz

1- How much will it cost them to buy the Gold put, and

2- what is the break evenon the ENTIRE position (the expected revenue less the option premium)?

Answer rating: 100% (QA)

lets break down the information provided Kinross is a major gold producer expecting to produce 50000... View the full answer