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Artyom0805 [142]
3 years ago
9

The multiplier for a futures contract on a stock market index is $50. The maturity of the contract is 1 year, the current level

of the index is 1,800, and the risk-free interest rate is 0.5% per month. The dividend yield on the index is 0.2% per month. Suppose that after 1 month, the stock index is at 1,820. a. Find the cash flow from the mark-to-market proceeds on the contract. Assume that the parity condition always holds exactly. (Round intermediate calculations to 2 decimal places.)
Business
1 answer:
jolli1 [7]3 years ago
5 0

Answer:

The cash flow mark to market proceeds = $754.45

Explanation:

The current index value after 12 months = current stock index * (1 + risk free - dividend yield)^12

= 1800 * (1 + 0.50% - 0.20%)^12

The current index value after 12 months = 1865.88

The future index value after 12 months = future stock index * (1 + risk free - dividend yield)^12

= 1820 * (1 + 0.50% - 0.20%)^11

The future index value after 12 months= 1880.97

The cash flow mark to market proceeds = (future index future value - current index future value) * multiplier

= (1880.97 - 1865.88) * 50

The cash flow mark to market proceeds = $754.45

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Fair Oaks Farms’ manure management, specifically the use of cow manure to power their facilities and fuel their milk tankers, is
dedylja [7]

Answer:

Natural resources

Explanation:

Im not quite sure what your asking but if im right I think  they have the competitive advantage of natural resource which would be the cow poop/manure that theyre using to power there facilities and fuel milk tankers.

sorry if im wrong

3 0
3 years ago
The management of Firebolt Industries Inc. manufactures gasolineand diesel engines through two production departments, Fabricati
GalinKa [24]

Solution:

Single factory overhead amount: the amount at which plant overheads or processing overheads are assigned to goods is referred to as single plant overhead rate.

Formula to measure a single plant-wide overhead rate:

Single plant-wide overhead rate :

\frac{Total budgeted factory overhead}{ Total budgeted plant-wide allocation base}  

Different development team overhead rate: this distribution system describes the various divisions engaged in the manufacturing cycle. Factory overheads are assigned to goods on the basis of the overhead cost for each of the manufacturing units.

Formula for calculating various output department overhead:

Multiple production department overhead rate:

\frac{ Budgeted department factory overhead}{ Budgeted department factory overhead}

For calculate: single plant-wide overhead rate use direct working hours (DLH) as the allocation basis, and measure factory overhead.

Using DLH as the allocation basis to measure a single plant-wide overhead limit.

Single plant-wide overhead rate :  \frac{Total budgeted factory overhead}{ Total budgeted plant-wide allocation base}

                                                     = \frac{80,000}{10,000 DLH}

For calculate: single plant-wide overhead rate use direct working hours (DLH) as the allocation basis, and measure factory overhead.

Using DLH as the allocation basis to measure a single plant-wide overhead limit.

4 0
3 years ago
There is conflict and distrust in the team. Glen, the team leader, doesn't think the team members are working enough. The team m
iogann1982 [59]

There is conflict and distrust in the team. Glen, the team leader, doesn't think the team members are working enough. The team members, on the other hand, don't think Glen trusts them to do their jobs. You want to resolve this conflict and make sure it doesn't happen again-<u>This can be achieved by using Conflict Management technique</u>

Explanation:

<u>Conflict in the workplace is inevitable and is a painful reality and is the major reason   for poor productivity and frustration among the employees.If conflict is managed in a proper way it can lead to increase in employees productivity.The strategist that can be used are:-</u>

<u>1) Understand the situation. </u>

Understanding/listening  both the side of the story before resolving the conflict is very important

<u>2) Acknowledge the problem. </u>

Acknowledging the frustration and concerns of the employees is an important step in resolving the conflict. what might seems to be a small problem to an employee may be a big problem for another person

<u> 3)Be patient while making decision. </u>

Information evaluation require time.Do not take any decision related to conflict management quickly,try to understand and resolve the situation.

<u>4)Avoid using coercion and intimidation. </u>

Emotional outbursts or coercing people may stop the problem temporarily, but do not fool yourself into thinking it is a long-term solution. Odds are the problem will resurface. At that point not only will you have the initial problem to deal with, but also the angry feelings that have festered below the surface during the interim.

<u>5) Focus on the problem, not the individual. </u>

Most people are known to be a  “problematic individual” during their work but one must avoid their  own pre-conceived notion or attitude about individuals and should focus on problem resolution.

<u>6) Establish guidelines. </u>

setting guidelines before the meeting

<u>7) Keep the communication open. </u>

Allow both the parties to keep their points on the conflict and then try to identify the real cause of conflict.

<u> 8. Act decisively. </u>

Communicating  to all the parties involved, and reviewed all the circumstances, and then take  your decision and act. Don’t leave the issue in limbo.

6 0
3 years ago
For m &gt; p2, the demand functions for goods 1 and 2 are given by the equations, x1 =m/p2 - 1 and x2 = p1/p2, where m is income
dmitriy555 [2]

Answer:

Option B is correct.

<u>A horizontal line</u>

Explanation:

Then for m > 2 , the income offer curve would be a horizontal line.

Income offer curve define as the curve which depicts the optimal choice of two goods at different levels of income at constant price. It is otherwise known as "Income Expansion Path"

8 0
3 years ago
Prepare the journal entry to record Regis’s employer payroll taxes resulting from the January 8 payroll. Regis’s state unemploym
Vilka [71]

Answer:

1a.

FICA-Social Security 5,369.20

FICA-Medicare 1,255.70

FUTA 519.60

SUTA 4,676.40

1B.

Dr Office salaries expense 25,760.00

Dr Sales salaries expense 60,840.00

Cr FICA—Social sec. taxes payable 5,369.20

Cr FICA—Medicare taxes payable 1,255.70

Cr Employee fed. inc. taxes payable 12,760.00

Cr Employee medical insurance payable 1,440.00

Cr Employee union dues payable 780.00

Cr Salaries payable 64,995.10

2.

Dr Payroll taxes expense 11,820.90

Cr FICA—Social sec. taxes payable 5,369.20

Cr FICA—Medicare taxes payable 1,255.70

Cr State unemployment taxes payable 4,676.40

Cr Federal unemployment taxes payable 519.60

Explanation:

1a. Calculation for the amounts for each of these four taxes of Regis Company.

REGIS Company’s:

Tax January 8 earnings

Subject to tax ×Tax Rate= Tax Amount

FICA-Social Security

86,600× 6.20%= 5,369.20

FICA-Medicare 86,600×1.45%= 1,255.70

FUTA 86,600×0.60%=519.60

SUTA 86,600× 5.40% =4,676.40

1B. Preparation of the journal entry to record Regis Company's January 8 employee payroll expenses and liabilities

Jan 8

Dr Office salaries expense 25,760.00

Dr Sales salaries expense 60,840.00

Cr FICA—Social sec. taxes payable 5,369.20

Cr FICA—Medicare taxes payable 1,255.70

Cr Employee fed. inc. taxes payable 12,760.00

Cr Employee medical insurance payable 1,440.00

Cr Employee union dues payable 780.00

Cr Salaries payable 64,995.10

2. Preparation of the journal entry to record Regis's employer payroll taxes resulting from the January 8 payroll

Jan 8

Dr Payroll taxes expense 11,820.90

(5,369.20+1,255.70+4,676.40+519.60)

Cr FICA—Social sec. taxes payable 5,369.20

Cr FICA—Medicare taxes payable 1,255.70

Cr State unemployment taxes payable 4,676.40

Cr Federal unemployment taxes payable 519.60

Calculation for the amount Subject to tax

Office salaries $25,760

Sales salaries $60,840

Subject to tax=$86,600

4 0
3 years ago
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