The arbitrage profit implied by these prices is $5.24.
<h3>Arbitrage profit</h3>
Given:
Future contract= 1645
Sport gold price = 1592
Risk-free rate (rf) = .03
Hence:
Arbitrage profit=1645-[1592(1+1.03)¹]
Arbitrage profit=1645- 1639.76
Arbitrage profit=1645 =$5.24
Therefore the arbitrage profit implied by these prices is $5.24.
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Answer:
$360,308
Explanation:
The computation of the total amount of interest revenue is shown below:
But before that we have to determine the annuity payment per year which is
Annuity payment per year is
= Fair value ÷ PVIFA for 10% for 5 years
= $991,692 ÷ 5.868
= $169,000
Now Total payments for eight years is
= $169,000 × 8
= $1,352,000
So, the amount of interest revenue is
= Total payments made for eight years - Fair value
= $1,352,000 - $991,692
= $360,308
Answer: $2.60
Explanation:
Based on the information given in the question, the maximum amount that the Cologne Division would be willing to pay for each bottle transferred would be the amount that the company can purchase the containers in the external market which is given in the question as $2.60.
That's the highest amount that they can but the containers for. Therefore, the answer is $2.60
Answer:
The correct answer is lower-class nonwhite.
Explanation:
The lower class is the poorest population segment of human society. It is characterized by having great gaps in its way of life and limitations in terms of access to economic resources. They are usually unemployed people, who do not own their own home or other goods or properties that are essential for living.
To this socioeconomic class belong people with very low educational levels, barely with primary education and some with secondary education. Some casual or independent workers also enter this class. Lower class families do not have good basic services in their homes.
Answer:
We will get $7680(thousands)
Explanation:
Answer
If we read the given data values in the passage, it is clear that the mean annual number of smart little cars in china is 7500 and the variance is equal to 6400
The variance is given for the number of cars, but not for the profit.
So, we need to convert the numerical value(number of cars) to money value(profit)
it is given that net revenue per car is $1.2 (thousands)
So, multiplying the net revenue by number of cars
we get, variance in profit = 6400*1.2 = $7680 (thousands)
