Question: WIDGETCO produces widgets. Each widget generates $ 4 6 0 in revenue and requires one ounce of gold as an input. WIDGETCO plans to produce

WIDGETCO produces widgets. Each widget generates $460 in
revenue and requires one ounce of gold as an input. WIDGETCO
plans to produce and sell one widget in exactly one year. The c.c.
risk-free rate is zero percent.
WIDGETCO is considering hedging their gold exposure with a
long forward contract. The one-year forward price of gold is $420
per ounce. If the spot price of gold is $450 per ounce in one year,
what is WIDGETCO's hedged profit?
WIDGETCO produces widgets. Each widget generates $460 in revenue and requires

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