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
iren2701 [21]
2 years ago
7

Bea Moran wants to establish a long derivatives position in a commodity she will need to acquire in six months. Moran observes t

hat the six-month forward price is 45.20 and the six-month futures price is 45.10. This difference most likely suggests that for this commodity:
Business
1 answer:
Marianna [84]2 years ago
4 0

Bea Moran wants to establish a long derivatives position in a commodity she will need to acquire in six months. Moran observes that the six-month forward price is 45.20 and the six-month futures price is 45.10. This difference most likely suggests that for this commodity: futures prices are negatively correlated with interest rates.

This is further explained below.

<h3>What are interest rates?</h3>

Generally, the fraction of a loan that is charged as interest to the borrower is often stated as a yearly percentage of the loan outstanding.

"lower interest rates encourage people to spend money on house upgrades"

In conclusion, Bea Moran would want to construct a long derivatives position in a commodity that she will need to buy in a little over half a year's time. Moran notes that the price of the six-month forward contract is now at 45.20, while the price of the six-month futures contract is currently at 45.10. Because of this disparity, it is quite probable that the prices of futures contracts for this commodity have an inverse relationship with interest rates.

Read more about interest rates

brainly.com/question/13324776

#SPJ1

You might be interested in
Dée Trader opens a brokerage account and purchases 300 shares of Internet Dreams at $36 per share. She borrows $4,500 from her b
meriva

Answer:

A) Dee´s Margin = 58.33%; B) Remaining Margin if price drops to $26 is 30.56% C) She won´t receive a margin call (but close...)

D) Rate of Return = - 32.36%

Explanation:

Hi, first let´s find out what the initial margin is, for that we have to use the following formula.

Margin=\frac{Equity}{ValueStocks}

Now, in order to find the equity, we have to find the total value of the stocks and substract the debt from it, since it was 300 shares at $30 per share, the total value of the investment is $7,800, therefore, its equity is $3,300 ($7,800-$4,500).

So everything should look like this

Margin=\frac{6,300}{10,800} =0.5833

So the initial margin was 58.33%

If the price drops to $26 by the end of the year, the remaining margin in her account is:

Margin=\frac{3,300}{10,800} =0.3056

So the remaining margin one year later, after the stock price dropped to $26 was 30.56%

Now, in order to find the rate of return on her investment, at the end of the year, we have to remember that the money loaned was at 11%, therefore, the best way to find out the return of this investment is to convert this into money, like such.

First (Gross Return of the stock)

Gross Return=\frac{Final.P-Initial.P}{Initial.P} x100

Gross Return=\frac{26-36}{36} x100=-0.2778

Ok, we have the gross return, which is -$27.78%

The interest expenses are just as follows.

Interest Expense=4,500*0.11=-495

To find the return on the investmen, we need to use the following formula.

RateReturn=\frac{FinalInvestment-InitialInvestment}{InitialInvesment} x100

The final investment is: Gross return($)+interest Expenses

FinalInvest=\frac{300*(-10)+(-4,500*0.11)}{10,800} =-0.3236

This means that, by the end of the year, her return on the investment was -32.36%. In money, this is - $3,495.

Best of luck.

5 0
3 years ago
Which of the following is NOT a typical strategy for firms to obtain benchmarking data about other companies?a. Hiring former em
Paha777 [63]

Answer:

a. Hiring former employees from other companies and assessing their knowledge.

Explanation:

"Benchmarking" is<em> a process conducted by a company when it wants to compare its performance with other competitors.</em> In order to do this, the company needs to look into <em>specific metrics</em> and<em> </em>approaches in order to analyze their company's operation and how well it does compared to others.

Hiring former employees from other companies and assessing their knowledge is not a typical/common strategy in order to obtain benchmarking data. Not many companies would like to rehire and if they ever do, it will be hard to use the benchmarking data since the former employee's company might be totally different from yours. Remember that competitive benchmarking is only done when you want to compare with your<u> competitors in the same field of business.</u>

6 0
3 years ago
True or false: taking actions that carry out the company's plan is a key part of the control process.
ipn [44]

The act of taking actions that carry out the company's plan is a key part of the control process is a false statement.

<h3>What is the control process?</h3>

The control process is one that entails a carefully act of collecting information in regards to a system, process, as well as person, so as to necessary decisions about them.

Hence, The act of taking actions that carry out the company's plan is a key part of the control process is a false statement.

Learn more about control process from

brainly.com/question/14051119

#SPJ1

6 0
2 years ago
Joe's pizza hired a fourth worker, who made an additional ten pizzas per hour. Joe also discovered that the number of pizzas mad
azamat

Answer:

number of pizza per our = 10

number of worker = 4

number of pizza per our per worker =2.5

Explanation:

7 0
3 years ago
The Electoral College makes the decision of electing the ________ of the United States. President, Senators, or ambassadors?
Natalka [10]
President 
After the public votes on a president the electoral college reviews the top choice and decides if they are qualified or not. 

8 0
3 years ago
Read 2 more answers
Other questions:
  • ​Trisurf Inc. has recruited some new employees and one of the managers is making a decision on the tasks that should be allocate
    15·1 answer
  • Which industry began to form in the 1930s? the railroad industry the cruise ship industry the airline industry the Disney resort
    5·1 answer
  • At the end of January, Mineral Labs had an inventory of 735 units, which cost $8 per unit to produce. During February the compan
    9·1 answer
  • Barker Corp. has a beta of 1.10, the real risk-free rate is 2.00%, investors expect a 3.00% future inflation rate, and the marke
    10·1 answer
  • This is a match question im offering 25 points too cuz ik ppl don't really like this kind but bear with me!
    12·1 answer
  • In a market economy, a. households decide which firms to work for and what to buy with their incomes. b. firms decide whom to hi
    5·1 answer
  • A check is__? (1 point)
    15·1 answer
  • Which of the following is a person who authorized an agent to act on his or her behalf ​
    13·1 answer
  • Classify each of the following as a(n) Operating Activity, Investing Activity, or Financing Activity. 1. Issuance of bonds. sele
    15·1 answer
  • Country Club Center sells season memberships for $100 each. Prior to May 1, 2017, 60 season memberships were sold. The season ru
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!