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marysya [2.9K]
3 years ago
15

OneChicago has just introduced a single-stock futures contract on Brandex stock, a company that currently pays no dividends. Eac

h contract calls for delivery of 2,500 shares of stock in 1 year. The T-bill rate is 9% per year.a. If Brandex stock now sells at $110 per share, what should the futures price be? (Round your answer to 2 decimal places.)
Business
1 answer:
-Dominant- [34]3 years ago
3 0

Answer: 299750

Explanation:

Based on no-arbitrage approach, future price should be equal to spot price compounded by risk-free rate.

Spot price = $110

Risk-free rate = 9%

Future price = 110*(1+9%) = 119.9

For 2500 shares = 119.9*2500 = 299750

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Beau's decision to tell somebody about his company's actions is an example of: whistle blowing

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Ethics is the study of moral human behavior. Ethical behavior usually varies with different areas. What is considered ethical is always subject to the cultural standards of that particular place. In a company environment, there are ethical standards that are supposed to be met on the part of the company and also individuals working in the company.

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3 years ago
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Required: "<em>Calculate the overhead assigned to the fabric case using the traditional costing system based on direct labor hours."</em>

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