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
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

You might be interested in
Economists use the term "money" to refer to___________.a. those types of wealth that are regularly accepted by sellers in exchan
Orlov [11]

Answer:

The correct answer is A

Explanation:

Money is an unit of economic which functions as usually recognized medium for the exchange for the purpose of the transactional in the economy. It provides the service for decreasing the transaction cost.

So, money refer to the kind of wealth, which is regularly accepted by the sellers in exchange for the services and the goods.

8 0
3 years ago
The generational group of managers that expect to give and get more feedback on their work are?
ElenaW [278]

The generational group of managers that expect to give and get more feedback on their work are Gen X; they focus on results more than hours

More about Gen X managers:

Although we don't hear much about Generation X these days, it was huge in the pre-Millennial era. Either you belonged to Generation X or you fit in with the crowd. Gen X managers are subtly replacing Boomers in management positions as they enter retirement.

A characteristic of Gen X managers is their drive for achievement, particularly financial success. Many members of Generation X are incredibly resourceful and motivated to succeed financially because they grew up seeing their parents struggle financially and have recently experienced their own.

Both Gen X managers and employees tend to favour less formal working arrangements that allow them to interact freely with both their superiors and the people they supervise.

Learn more about Gen X here:

brainly.com/question/3032727

#SPJ1

5 0
2 years ago
Suppose a firm’s business operations are such that they mirror movements in the economy as a whole very closely; that is, the fi
olchik [2.2K]

Answer:

Equity Beta= 27

Explanation:

Please see attachment

5 0
3 years ago
Which of the following fundamental archetypes of leadership is most likely to take risks and action in a crisis? a. The Visionar
tankabanditka [31]

Answer:

The warrior-knight archetype

Explanation:

The idea of an archetype occurs Throughout fields relevant to actions, historical psychology philosophy, and literature research.

The Warrior-Knight stereotype applies to a ruler, who goes against the opponent and directs change, as per the basic leader archetypes.

warriors also posses great leadership qualities with great might.

7 0
3 years ago
Harris Fabrics computes its plantwide predetermined overhead rate annually on the basis of direct labor-hours. At the beginning
wolverine [178]

Answer:

$6.7 per direct labor hour

Explanation:

Given:

Direct labor-hours = 20,000

Fixed manufacturing overhead cost = $94,000

variable manufacturing overhead = $2.00 per direct labor-hour

Actual manufacturing overhead cost for the year = $123,900

Actual total direct labor = 21,000 hours

Now,

Total Estimated Manufacturing Overhead

= 94000 + ( 2 × 20000 )

= $134,000

And,

Predetremined Overhead Rate = \frac{\textup{Estimated Maufacturing Overhead}}{\textup{Estimated Direct Labor Hours.}}

or

Predetremined Overhead Rate = \frac{\textup{134,000}}{\textup{20000}}

or

Predetremined Overhead Rate = $6.7 per direct labor hour

5 0
4 years ago
Other questions:
  • hyperlink is a feature that A. calculates data in the cell B. connect text in a document to an outside source. C. saves a worksh
    6·2 answers
  • Adjustments help to ensure that all revenues are recorded in the period in which they are:______
    13·1 answer
  • Sobota Corporation has provided the following partial listing of costs incurred during August:
    13·1 answer
  • Which describes the role of automatic stabilizers in the economy?
    14·1 answer
  • 12/31/06Accounts receivable $525,000Allowance (45,000)Cash realizable value 480,000During 2007 sales on account were $145,000 an
    14·1 answer
  • Which of the following statements regarding life insurance needs is / are correct? 1. The human life value approach looks forwar
    12·1 answer
  • The term free trade can be best described as
    9·1 answer
  • Allied made its first and only purchase of inventory for the period on
    11·1 answer
  • Prepare journal entries to record each of the following four separate issuances of stock.
    11·1 answer
  • In the _______ case, the U.S. Supreme Court held that the FAA applies to arbitration clauses contained in employment contracts e
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!