1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Lelu [443]
2 years ago
9

A 1-year gold futures contract is selling for $1,645. Spot gold prices are $1,592 and the 1-year risk-free rate is 3%. The arbit

rage profit implied by these prices is _____________.
Business
1 answer:
stealth61 [152]2 years ago
5 0

The arbitrage profit implied by these prices is $5.24.

<h3>Arbitrage profit</h3>

Given:

Future contract= 1645

Sport gold price = 1592

Risk-free rate (rf) = .03

Hence:

Arbitrage profit=1645-[1592(1+1.03)¹]

Arbitrage profit=1645- 1639.76

Arbitrage profit=1645 =$5.24

Therefore the arbitrage profit implied by these prices is $5.24.

Learn more about  arbitrage profit here:brainly.com/question/15394730

#SPJ1

You might be interested in
Transactions are posted into ledger account from ---
BaLLatris [955]

Answer:

The correct answer is "Journal entries passed in the journal".

Explanation:

  • Posting throughout ledger has always been decided to make from transactions throughout the journal passed across.
  • This becomes important to keep in mind that almost every entrance in something like a journal would also have to be commented on among all transactions debited or otherwise given credit throughout the entry to something like the journal.
8 0
3 years ago
Product mix width refers to the ________. A) number of versions offered for each product in the line B) ways in which the variou
sergey [27]

Answer:

D. number of different product lines the company carries

Explanation:

Product mix is referred to as product assortment which is the total number of product lines a company offers to its customers.

3 0
3 years ago
"obligation to transer cash or other resources as a result of a past transaction" is called ____________
spin [16.1K]

Answer:

The correct answer is: Liability.

Explanation:

A liability is an obligation that arises during the course of business. It represents a third party's claim in the company's assets usually from lenders or other creditors. Liability can arise in many different ways. Liabilities can be borrowing or a promise to pay later or any other type of obligation because of past transactions.

7 0
3 years ago
If you borrow​ $100,000 at an annual rate of​ 8.00% for a 10minusyearperiod and repay with 10 equal annual endminusofminusthemin
Ivahew [28]

Answer:

Amortized loan

Explanation:

An amortized loan is a loan with scheduled periodic payments that are applied to both principal and interest. An amortized loan payment first pays off the relevant interest expense for the period, after which the remainder of the payment reduces the principal.

Interest is calculated based on the most recent ending balance of the loan and the interest amount owed decreases as payments are made. This is because any payment in excess of the interest amount reduces the principal, which in turn, reduces the balance on which the interest is calculated.

3 0
3 years ago
During the year a parent makes sales of inventory at a profit to its 75 percent owned subsidiary. The subsidiary also makes sale
FinnZ [79.3K]

Answer: total revenues from intercompany sales.

Explanation:

From the question, we are informed that during the year a parent makes sales of inventory at a profit to its 75 percent owned subsidiary and that the subsidiary also makes sales of inventory at a profit to its parent during the same year.

We are further told that both the parent and the subsidiary have on hand at the end of the year 20 percent of the inventory acquired from one another.

In this case, the consolidated revenues for the year should exclude total revenues from intercompany sales

5 0
3 years ago
Other questions:
  • A pizza company produces frozen pizzas in three departments: assembly, freezing, and packaging. In assembly, crust ingredient ar
    12·1 answer
  • Brian would like to get a new cell phone plan. He would like to know what monthly payment he can afford. He should _____.create
    15·2 answers
  • Office Space, Inc. sold 30,000 shares of its no-par value common stock at a cash price of $10 per share. The entry to record thi
    9·1 answer
  • For each timing difference​ listed, identify whether the difference would be reported on the book side of the reconciliation or
    5·1 answer
  • Which of the following types of inventory describes inventory that has been purchased but not​ processed?A. raw material invento
    13·1 answer
  • Operating income and tax rates for C.J. Company’s first three years of operations were as
    8·1 answer
  • NewTel is a telephone company with a policy of filling positions internally through promotions, rather than hiring from outside.
    5·1 answer
  • Why are cooperatives formed?
    7·2 answers
  • A certificate of deposit pays a higher interest rate than a savings account because the money is
    11·1 answer
  • A key feature of business is that it facilitates an exchange of
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!