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Soloha48 [4]
3 years ago
12

On January 1, you sold one February maturity S&P 500 Index futures contract at a futures price of 2,422. If the futures pric

e is 2,505 at contract maturity, what is your profit? The contract multiplier is $50. (Input the amount as positive value.)
Business
1 answer:
ira [324]3 years ago
8 0

Answer:

The loss will be $4,150.

Explanation:

As the investor sold S&P 500 futures contract, the investor has taken a short position in S&P 500 indexes.

At time of maturity, because the S&P index is higher than the future price ( 2,505 >2,422), the Investor has made a loss from the future contract.

The loss from the future contract is calculated as:

( S&P index at future maturity - S&P future price ) x contract multiplier = ( 2,422 - 2,505) x 50 = $(4,150)

Thus, the loss is $4,150.

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The existence of a ________ means that the interest rate on a two-year bond will exceed the average interest rate on two success
krok68 [10]
The answer is risk-premium
7 0
3 years ago
Suppose that a firm’s marginal production costs are given by MC = 10 + 4Q. The firm’s production process generates a toxic waste
SCORPION-xisa [38]

Answer:

A) Marginal private cost= 50

B) Total Marginal social cost to society = 70

Explanation:

A) In order to find the marginal private cost we will use the firms production cost formula as it is the private cost that the firm is enduring and is only relevant to the firm's cost and not the society's cost.

In order to find the marginal unit cost of the 10th unit produced will will replace Q in the formula by 10 as it represents quantity.

MC= 10 + 4Q

MC= 10 + 4(10)

MC= 10 +40 = 50

B) In order to find the marginal cost to society we will add the marginal external cost of the 10th unit to its private cost. We already know the marginal private cost is 50 now we need to find the marginal external cost to it to find the total marginal cost.

Marginal external cost = 2Q

Q= 10

Marginal external cost = 2*10 =20

The total Marginal cost to society= 50 + 20= 70

3 0
3 years ago
Manziel Corporation constructed a building at a cost of $10,000,000. Average accumulated expenditures were $4,000,000, actual in
stira [4]

Answer:

$237,500

Explanation:

Cost of building      $10,000,000

Avoidable Interest            $300,000

Less;Salvage value           ($800,000)

Depreciation  Cost        $9,500,000

Depreciation per year $9,500,000/40=$237,500

7 0
4 years ago
Which of the following are the three characteristics that an advertising appeal should have? A. humorous, memorable, and interes
mihalych1998 [28]

Answer: (E) Meaningful, believable, and distinctive

Explanation:

  The advertising appeal is one of the type of communication process in which the the various types of organizations and the companies using this business strategy for promoting their brands and the products in the market.

 The main objective of the advertising appeal is to creating awareness and inform customers or users about the new brands, various types of products and the services in the market.  

 According to the given question, there are mainly three type of characteristics of the advertising appeal that are as follows:

  1. Meaningful
  2. Distinctive
  3. Believable  

 The main aim of the meaningful characteristic is to make the product more interesting to the customers by highlighting its various types of meaningful advantages. Distinctive makes the product unique from all the products available in the market and believable appeal ensure the customer about the accurate delivery of the products.

 Therefore, Option (E) is correct answer.

6 0
3 years ago
Brian is responsible for the promotions and public relations of his firm, which produces rubber tires. a recent development in t
brilliants [131]

Answer:

Not newsworthy.

Explanation:

The news is not worth publishing because this is not something that excites the public or catches their attention.

When you are in public relations and you need to advertise and promote a company and it's products, the idea is to capture the imagination of your target audience.

In this example, the news proposal will rightly be rejected because it does not seem to serve any of these purposes.

8 0
4 years ago
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