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Softa [21]
3 years ago
13

One Chicago has just introduced a new single stock futures contract on the stock of Brandex, a company that currently pays no di

vidends. Each contract calls for delivery of 2,000 shares of stock in one year. The T-bill rate is 5% per year. a. If Brandex stock now sells at $260 per share, what should the futures price be
Business
1 answer:
scZoUnD [109]3 years ago
4 0

Answer:

$273

Explanation:

the futures price = current stock price x (1 + T-bill rate)ⁿ

  • current stock price = $260
  • T-bill rate = 5%
  • n = is not given, but since the T-bill rate is for one year, I will suppose the futures contract is also for one year

the futures price = $260 x (1 + 5%)¹ = $260 x 1.05 = $273

A futures contract is a contract by which a buyer or seller is obligated to either purchase or sell (respectively) a stock or other security at a specific price in a specific date in the future.

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Answer:

Be confident and make a good impression!

Explanation:

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Which statement about transfer batch sizes is BEST?A) Transfer batches are the same size as process batches when arriving at a b
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Explanation:

4 0
3 years ago
A technical analyst has been charting the price movements of ABC stock. The stock has been fluctuating in price between $63 and
bogdanovich [222]

Answer:

The trader should orders to buy ABC stock or take a long position to the stock.

Explanation:

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6 0
4 years ago
List any 2 merits and demerits of a company
egoroff_w [7]

Answer:

Merits

• limited liability

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Demerits

•Company mismanagement

•Lack of secrecy

Explanation:

Merits

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°Perpetual existence. This is based on the principle of separate legal entity , which means that the death of any shareholder or director would not in any way affect the existence of the company.

Demerits

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° Lack of secrecy. There is no secrecy in company as annual reports are given to the shareholders hence enable the competitors know it's performance and also provide company statements to registrar of companies.

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