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
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

You might be interested in
Suppose that you are available to go to work but have not looked for a job for at least the last four weeks because you believe
My name is Ann [436]

Suppose that you are available to go to work but have not looked for a job for at least the last four weeks because you believe that there​ aren't any jobs available. You would be counted as<u>  </u> <u>discouraged worke</u>r

Explanation:

<u>Suppose that you are available to go to work but have not looked for a job for at least the last four weeks because you believe that there​ aren't any jobs available. You would be counted as</u>

A <u>discouraged worke</u>r is an individual who has given up looking for employment even though they are perfectly eligible to take up a job but to the repeated failure in finding a job  they have then ceased their search for finding an employment.

Discouraged workers have stopped looking for employment opportunities because they feel that their is no job that suits their qualifications

Since they have stopped searching they are not included in the labor force hence when we see the statistics for unemployment these people are not included there also .So they are called <u>Discouraged Workers</u>

<u> The correct formula for calculating the unemployment​ rate</u>

<u>(</u>

<u> D) Neither formula is used to calculate the unemployment rate</u>

The formula for Unemployment rate is

==> U=Unemployed People/Labor force*100

<u></u>

7 0
3 years ago
In a $1031 like-kind exchange, Rafael exchanges a business building that originally cost $346,800. On the date of the exchange,
Andreyy89

Answer:

A. $52,020

B. $0

C. $208,080

Explanation:

a. Computation of Rafael's realized gain on the exchange

Using this formula

Realized gain=Fair market value -Adjusted basis

Let plug in the formula

Realized gain= $190,740-$138,720

Realized gain=$52,020

Therefore a. Rafael's realized gain on the exchange is $52,020

b. Based on the information given Rafael's recognized $1031 gain is $0 reason been that

NO BOOT WAS RECEIVED

c. Computation for Rafael's $1245 depreciation recapture Amount

Using this formula

Depreciation recapture Amount=Equipment originally cost -Adjusted basis

Let plug in the formula

Depreciation recapture=$346,800-$138,720

Depreciation recapture=$208,080

Therefore Rafael's $1245 depreciation recapture of $208,080 is carried over to the replacement property

4 0
3 years ago
The incidence of a tax is determined by which group (buyers or sellers) must actually pay the government. When demand is inelast
Bezzdna [24]

Answer:

The incidence of a tax is determined by which group (buyers or sellers) must actually pay the government. FALSE, the real effect of taxes is measured by the price elasticity of the demand and the supply.

When demand is inelastic and supply is elastic, the burden of a tax falls mainly on producers. FALSE, when the price elasticity of demand is inelastic and the price elasticity of supply is elastic, the burden of tax falls mainly on the consumers.

When demand is elastic and supply is inelastic, the burden of a tax falls mainly on consumers. FALSE, when the price elasticity of demand is elastic and the price elasticity of supply is inelastic, the burden of tax falls mainly on the suppliers.

An excise tax can distort incentives and create missed opportunities for mutually beneficial transactions. TRUE

5 0
3 years ago
In 2005, BridgePort Brewing Company expanded sales of its BridgePort India Pale Ale, and BridgePort Black Strap Stout into Alaba
Rina8888 [55]

Answer: organizing

Explanation:

When the brewery allocated resources to increase its production and distribution, the management function that it'll have relied on is organizing.

First and foremost, we should note that the management functions usually include:

• planning,

• organizing,

• leading, and

• controlling.

The organizational skills is vital in order for the company to runs smoothly. Organizing has to do with the establishment of internal processes in order to know the workers that fits a particular position.

Also, the management makes sure that everyone are organized and that workers are working hard towards the accomplishment of company's goals.

7 0
3 years ago
The purpose of stock valuation isGroup of answer choicesof limited value, since the efficient market hypothesis proves that all
ki77a [65]
To determine whether the value of the common stock is fairly represented by its market price.
8 0
3 years ago
Other questions:
  • A visual of a map color-coded to indicate states' rates of consumer debt is an example of
    12·2 answers
  • homeworklib You want to evaluate three mutual funds using the information ratio measure for performance evaluation. The risk-fre
    6·1 answer
  • What are the three conditions for a market to be perfectly​ competitive? for a market to be perfectly​ competitive, there must b
    12·1 answer
  • The accounting measure of a firm's equity value generated by applying accounting principles to asset and liability acquisitions
    11·1 answer
  • In facility location decision making matching the educational and skill levels of the labor pool to a company's needs is even mo
    15·1 answer
  • Sheffield Corp. had the following accounts and balances: Accounts payable $28300 Equipment $34800 Accounts receivable 4550 Land
    15·1 answer
  • Currently, the Bureau of Labor Statistics does not include homemakers in its employment and labor force totals. What would happe
    6·1 answer
  • Which type of investment involves lending money and charging interest on it?
    14·1 answer
  • The portfolio with the lowest standard deviation for any risk premium is called the_______. A.efficient frontier portfolio B.CAL
    10·1 answer
  • Allen’s ark sells 2000 canoes per year at a sales price of 460
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!