In July this year, you entered an opening position of 45 short futures contracts on gold. Which of the following is FALSE:

The weather is expected to have an adverse impact on the volume of corn that will be harvested. In this case, a farmer should enter into short forward contracts to hedge the price risk. Required: True or False?

You have a business based in Australia that has just imported a product from a seller in Mexico. The invoice for this purchase is denominated in Australian dollars (AUD) and must be paid in 30 days. That is, you will pay for your purchase in AUD.

Given this arrangement, what is the exchange-rate risk you face as an importer?

An equity portfolio has a beta of 1.4. Over a 8 month period, the return on the market is 6% (this includes both dividends and capital gains/losses). If the riskfree rate is 2% per annum, calculate the return on the equity portfolio over this period.

If your answer is say 4.3%, enter 0.043. (i.e., 3 decimal places)