Bea Moran wants to establish a long derivatives position in a commodity she will need to acquire in six months. Moran observes that the six-month forward price is 45.20 and the six-month futures price is 45.10. This difference most likely suggests that for this commodity: futures prices are negatively correlated with interest rates.
This is further explained below.
<h3>What are interest rates?</h3>
Generally, the fraction of a loan that is charged as interest to the borrower is often stated as a yearly percentage of the loan outstanding.
"lower interest rates encourage people to spend money on house upgrades"
In conclusion, Bea Moran would want to construct a long derivatives position in a commodity that she will need to buy in a little over half a year's time. Moran notes that the price of the six-month forward contract is now at 45.20, while the price of the six-month futures contract is currently at 45.10. Because of this disparity, it is quite probable that the prices of futures contracts for this commodity have an inverse relationship with interest rates.
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<u>Solution and Explanation:</u>
GDP is calculated as follows:
Y = C + G + I + NX
where
C = Consumption
G = Government Expenditure
I = Investment
NX = Net Exports
It is mentioned that in 2015, GDP was 50 million and in 2016, it was 48 million without any change in the factors except NX. It means the net exports that is the difference between export and the import of the country has changed and it has fallen by 2 million.
Answer: The answer has been attached
Explanation:
The journal is a book in accounting that is used to record the transactions that affect a business. It should be noted that the double entry method of bookkeeping is utilised while recording in a journal.
The journal has been attached in the following way:
1. The journal was used to record the balance sheet particulars.
2. To record the transaction in the internal service fund that is external to the government.
3. To record the internal service fund in the government-wide statements as a part of governmental activities.
It should also be noted that the net income of $84,000 was to be shared as one-third to general government, one-third to public safety, and one-third to public works. This means they'll all receive ($84,000/3) = $28,000 each.
Further explanation can be found in the attached file.
Answer:
new net worth = 79.2 billion
Explanation:
given data
net worth = $76.0 billion
gains = $3.20 billion
to get here
new net worth
solution
we get here new net worth that is express as
new net worth = net worth + gains .............................1
put here value and we will get here
new net worth = $76.0 billion + $3.20 billion
new net worth = 79.2 billion
Answer: that means you got 3/4 worth of supplies that were purchased.
Explanation:
So the way you did this problem is so weird and is not understandable
