Question: Today the spot rate between US dollars ( USD ) and Australian dollars ( AUD ) is USD 1 = AUD 1 . 6 2
Today the spot rate between US dollars USD and Australian dollars AUD is USDAUD and the current spot price of gold is USD per ounce. You are an Australian gold miner and expect to have ounces of gold ready for sale in months time. You decide not to hedge your exposure. When you are ready to sell the gold in months, the spot price of gold is USD per ounce, and the spot exchange rate is USD AUD
The Australian gold miner is exposed to the risk of the gold price Answer Question
The Australian gold miner is exposed to the risk of the USD Answer Question
In three months time, when the Australian gold miner sells ounces of gold at the spot price for gold, the revenue received in AUD will be AUD Answer Question
million. Give your answer in millions to two decimal places or your answer will be incorrect.
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