Suppose that you write a put contract with a strike price of $40 and an expiration date in three months. The current stock price is $41 and the contract is on 100 shares. What have you committed yourself to or what do you have right to? a. I have committed to purchase the stock at $40 b. I have a right to sell the stock at $40 c. I have committed to sell the stock at $41 d. I have a right to purchase the stock at $41 It is July 2014. A mining company has just discovered a small deposit of gold. It will take six months to construct the mine. The gold will then pe extracted on a more or less continuous basis for one year. Futures contracts on gold are available with delivery months every two months from August 2014 to December 2015. Each contract is for the delivery of 100 ounces. Discuss how the mining company might use futures markets for hedging. a. The mining company cannot use futures to lock in the price received for the gold b. The mining company can short futures to lock in the price received for the gold c. The mining company can buy futures to lock in the price received for the gold d. The mining company can use forward but not futures contracts