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
Bed &amp; Bath, a retailing company, has two departments, Hardware and Linens. The company's most recent monthly contribution fo
Dafna1 [17]

For this problem, we are required to calculate the net operating income.

In order to answer the question, we will first calculate the impact of the changes on the Hardware department. Then we will add the remaining fixed costs that are currently charged to Linens that will continue.

To calculate net operating income, subtract operating expenses from the revenue generated by a property. Revenue from real Hardware department estate includes rental income, parking fees, service changes, vending machines, laundry machines, and so on.

Net income, also known as the bottom line, Hardware department indicates a business's profitability. It shows how much profit is left from revenue after accounting for expenses and liabilities. Net income is profit that can be distributed to business owners or shareholders or invested in business growth.

A corporation's positive net income causes an increase in the retained earnings, which is part of stockholders' equity. A net loss will cause a decrease in retained earnings and stockholders' equity.

learn more about Hardware department: brainly.com/question/27803497

#SPJ4

6 0
1 year ago
Mayan company had net income of $33,480. the weighted-average common shares outstanding were 9,300. the company has no preferred
Dvinal [7]

Answer:

Earnings Per Share = $3.6

Explanation:

Given

Net Income Average = $33,480

Weighted-average common shares outstanding = 9,300

Shares sold = 4,300

Required

Calculate the company's earnings per share.

Earning per share is calculated as thus;

Let N represent the Net Income; P represent the Preferred Dividend and W represent the Weighted-average common shares outstanding

Earnings Per Share = \frac{N - P}{W}

The question says there was no preferred stock;

So, P= 0

Substitute $33,480 for N and 9,300 for W.

The formula becomes;

Earnings Per Share = \frac{33,480 - 0}{9300}

Earnings Per Share = \frac{33,480}{9300}

Earnings Per Share = 3.6

Hence, the calculated Earnings per share of Mayan company is $3.6

3 0
3 years ago
Alex, an American, was invited to a formal dinner by his French manager. He was not sure about the correct flatware to be used f
Darina [25.2K]

Answer: Modeling

Explanation: Alex is modeling the behavior of others on the dining table to know the right flatware to use because he isn't sure of the correct one to use.

Modeling someone's behavior means to observe their behavior and trying to imitate them.

6 0
3 years ago
As families move through the assessment and evaluation processes, do not change a child's care care routine curriculum.
victus00 [196]

<u>FALSE.</u>

As families move through the assessment or evaluation processes, adjust the child’s routine curriculum as new information emerges, and be willing to share your expertise.

In children, there is a compulsion to learn that comes from within. Every childcare facility needs a curriculum that will support every child's growth across all learning domains in order to lead their learning and help them attain their full potential.

Your centre's instructional mission can be articulated through a curriculum. It discusses your educational objectives (what you hope to achieve) and how you intend to go about achieving those objectives. What children will learn, how they will learn it, and how it will be measured will all be laid out in your curriculum. There are many theories on how children learn and grow, and most of them have been implemented in some form of schooling.

To know more about curriculum refer to:

brainly.com/question/17112325

#SPJ1

3 0
1 year ago
Cost ConceptOn February 3, Clairemont Repair Service extended an offer of $360,000 for land that had been priced for sale at $40
guajiro [1.7K]

Answer:

The land should be recorded in Clairemont Repair Service’s records at $380,000

Explanation:

According to the historical cost principle, the recording of the fixed assets should be recorded at the purchase price or cost price which is to be shown in the assets side under the balance sheet.

So, according to the question, on February 28, the repair service accepted the seller's counteroffer which means that the land was purchased on February 28 for $380,0000. So, by $380,000 amount, the land would be recorded.

Other costs which are mentioned in the question is ignored.

7 0
3 years ago
Other questions:
  • Interior Designs has a days sales in inventory of 51 days, an average payment period of 38 days, and an average collection perio
    7·1 answer
  • uses project characteristics in a mathematical model to estimate project costs. a. Rough order of magnitude estimating b. Bottom
    5·1 answer
  • Many products available to the public before world war i contained _______, which was accepted early on as a relatively harmless
    6·1 answer
  • 19 Sold merchandise that cost $800 to Art Co. for $1,200 under credit terms of 2/15, n/60, FOB shipping point, invoice dated Jul
    7·1 answer
  • Jimland's government has severe restrictions toward the entry of foreign companies into the country. A foreign company intereste
    5·1 answer
  • Suppose that Third National Bank has reserves of $20,000 and checkable deposits of $100,000. The reserve ratio is 20 percent. Th
    6·1 answer
  • On December 15, 2021, Rigsby Sales Co. sold a tract of land that cost $3,500,000 for $5,000,000. Rigsby appropriately uses the i
    5·1 answer
  • What is it like to be a criminal in a mixed economy
    8·1 answer
  • Kershaw Electric sold $6,000,000, 10%, 10-year bonds on January 1, 2019. The bonds were dated January 1, 2019, and paid interest
    12·1 answer
  • Which of the following is a term for physical goods that are bought and<br> sold?
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!