Answer:
$ - 1.96
Explanation:
After three months, Alice (long the contract) can buy the underlying by paying the delivery price of $40 which is $2 less than $42 the long position would have to pay if the contract was entered today.
DATA
Delivery price = $40
The three-month risk-free interest rate (with continuous compounding) =8%.
The current forward price = $42
Solution
So based on the present situation, Alice would be in $2 profit at the end of 3 months and Bob would be in $2 loss
Present value of Bob's loss (with continuous compounding) = 2\times e^{-0.08\times 0.25}
Present value of Bob's loss (with continuous compounding) = $1.96
The value of Bob's position is $ - 1.96
Answer:
rise and aggregate demand would shirt right
Explanation:
Answer:
All of these answers is correct.
Explanation:
Answer:
The Correct answer is C "Courts are generally suspicious of dollar amounts determined by the net worth method because courts realize that the net worth can only provide approximations of the amount stolen."
Explanation:
There is always suspicion from the court on the dollar amounts derived from using the net worth method, and this is because courts have been able to understand that the net worth method does not have the potential to calculate the exact stolen amount, but only provide estimations and approximates of the main amount.
