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
nignag [31]
2 years ago
12

A stock index spot price is $1,287. the zero coupon interest rate is 3.8%. what is the potential arbitrage profit if the 6-month

futures contract on the index is priced at $1,350
Business
1 answer:
jek_recluse [69]2 years ago
6 0

The potential profit if the future contract on the index for the stock is priced at $1350 will be $39.45.

<h3>What is potential profit?</h3>

The ability or the capacity of an individual or a group to potentially earn higher amount of monies in the future trading transactions during a given financial period, is known as potential profit.

The computation of potential profit will be such that the return at the rate of 3.8% would have a given a maximum return of $48.9 annually($24.45 in 6 months); however, the index after 6 months is priced at $1350.

Potential Profit= 91350-1335+24.450 = $39.45

Hence, the potential profit is as computed above.

Learn more about potential profit here:

brainly.com/question/22714492

#SPJ1

You might be interested in
PLEASE I NEED HELP!
lyudmila [28]

Answer:

Social entrepreneurs seek innovative ways and operate to drive change, whereas social enterprises form to fulfill a business purpose and solve societal needs through their commercial activities.

5 0
2 years ago
The solicitation of a consumer's consent (called "opt-in") to receive email and advertising based on personal data supplied by t
Fantom [35]

Answer:

e.permission marketing

Explanation:

Permission marketing -

It is the method of advertising , in which the people are given the choice of getting the promotional messages , is known as permission marketing .

This method is given in the book by author and entrepreneur Seth Godin .

By this method of advertising , the people are given the choice of whether to receive the messages or not .

In this form of marketing , the materials are often send to customers without any consent , for the promotion of the products .

4 0
3 years ago
When did president hoover assure the nation that the fundamental business of the country...is on a sound and prosperous basis?
rodikova [14]

The time where it took place of President Hoover assures the nation in regards with the fundamental business of the country is on a sound and prosperous basis is during the day following the black Thursday, that was during Friday and it was after the day of the stock market has crashed.

6 0
3 years ago
What happens when supply exceeds demand?
olya-2409 [2.1K]
A. The prices will decrease
3 0
3 years ago
Please, help, I will award brainliest!
AysviL [449]

For lower income people:

The more the government puts towards health care would mean there would be a higher quality of life for low income areas allowing them to get access to needed healthcare for no cost to them.

For higher income people / corporate entities:

it would mean higher taxes on the 1% and 0.1% of the richer people and raising taxes on corporations such as higher taxes on dividends.

Summary:

For a SoL on one side to change another side would have to lose.

3 0
3 years ago
Other questions:
  • In the "iron law of oligarchy," robert michels stated that bureaucracy always means ________
    7·1 answer
  • Suppose that the one-year interest rate is 5.0 percent in the United States; the spot exchange
    10·1 answer
  • During Burns Company's first year of operations, credit sales totaled $140,000 and collections on credit sales totaled $105,000.
    10·1 answer
  • Which of these activities is within the extractive industry?
    12·2 answers
  • Rundle Company manufactures two products. The budgeted per-unit contribution margin for each product follows: Super Supreme Sale
    6·1 answer
  • The value of United States currency is based on
    13·1 answer
  • Hana Coffee Company roasts and packs coffee beans. The process begins by placing coffee beans into the Roasting Department. From
    8·1 answer
  • A financial institution that accepts deposits makes loans and provides other services as a nonprofit organization is called a:
    9·2 answers
  • Question Content Area
    8·1 answer
  • The planning cycle is represented with six steps in our text, but in practice, it has?
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!