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Sergeu [11.5K]
3 years ago
8

Is the futures price of a stock index greater than or less than the expected future value of the index? Explain your answer.

Business
1 answer:
stepan [7]3 years ago
8 0

Answer:

It can be greater as well as less.

Explanation:

1st of all we should know what is Future Price and what is Stock Index.

The futures price can be more or less that the predicted fee.

When futures costs are lower than predicted price spot fees, the situation is known as normal backwardation.

When futures prices are higher than anticipated spot charges, it is called normal contango

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3 years ago
During 2017, Skysong Inc. changed from LIFO to FIFO inventory pricing. Skysong began operations in 2015 and its pretax income in
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Answer:

See Explanation below for the detailed answer

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<em />

2016 Lifo : $ 625000 Tax : $187500    Profit     $ 437500

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<em></em>

2017 Fifo: $644000 Tax : $ 193200     Profit     $ 450800

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