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uranmaximum [27]
2 years ago
11

A single-stock futures contract on a non-dividend-paying stock with current price $250 has a maturity of 1 year. If the T-bill r

ate is 4%. What should the futures price be if the maturity of the contract is 2 years?
Business
1 answer:
Nuetrik [128]2 years ago
4 0

Answer:

$270.4

Explanation:

Calculation for What should the futures price be if the maturity of the contract is 2 years

Using this formula

Future Price= Stock Price ×(1 + Risk Free rate)^Maturity years

Let plug in the formula

Future Price=$250×(1+4%)^2

Future Price=$250×(1+0.04)^2

Future Price$250×(1.04)^2

Future Price=$250×1.0816

Future Price=$270.4

Therefore What should the futures price be if the maturity of the contract is 2 years will be $270.4

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the area of a rectangle is 600 cm2 and its breadth is two-third of its length find the length and breadth of the rectangle​
alexandr1967 [171]

Given:

Area of a rectangle is 600 \text{cm}^2.

Breadth is two-third of its length.

To find:

The length and breadth of the rectangle​ .

Solution:

Let x cm be the length of the rectangle.

Then, Breadth or width of the rectangle = \dfrac{2}{3}x cm

Area of a rectangle is

Area=Length \times Breadth

600=x \times \dfrac{2}{3}x

600=\dfrac{2}{3}x^2

Multiply both sides by 3.

1800=2x^2

Divide both sides by 2.

900=x^2

Taking square root on both sides.

\pm \sqrt{900}=x

\pm 30=x

Length cannot be negative. So, x=30.

Now,

Length = 30\text{ cm}

Breadth = \dfrac{2}{3}\times 30\text{ cm}

             = 2\times 10\text{ cm}

             = 20\text{ cm}

Therefore, the length of the rectangle is 30 cm and the breadth is 20 cm.

8 0
2 years ago
El Tapitio purchased restaurant furniture on September 1, 2021, for $45,000. Residual value at the end of an estimated 10-year s
muminat

Answer:

$1,300 and $3,900

Explanation:

The computation of the depreciation expense for the year 2021 and 2022 using the straight line method is shown below:

= (Original cost - residual value) ÷ (useful life)

= ($45,000 - $6,000) ÷ (10 years)

= ($39,000) ÷ (10 years)  

= $3,900

In this method, the depreciation is same for all the remaining useful life

For the year 2021, it is

= $3,900 × 4 months ÷ 12 months

= $1,300

The four months are taken from Sep 1 to Dec 31

And, for the year 2022, it is $3,900

4 0
2 years ago
Select the statements that are true.
o-na [289]
<h2>The first three options are right</h2>

Explanation:

Exchange rate:

  • The "price  or value of one country's currency" is exchanged for the price of "another country's currency value".
  • The exchange rate always varies. It gets updated everyday.
  • Exchange rates are calculated based on the value of "interest rate, trade, inflation, growth rate, employment and geopolitical conditions".
  • There are two ways in which currency value is determined. A floating value is identified by the open market.
  • We must travel to another country when we need more exchange rates.

4 0
3 years ago
Which of the following would be best considered to be an agency conflict problem in the behavior of the following financial​ man
fredd [130]

Answer:

A. Bill chooses to pursue a risky investment for the​ company's funds because his compensation will substantially rise if it succeeds. 

Explanation:

An agency conflict problem usually arises when the agent (managers) do not act in the best interest of his principals (e.g. shareholders) usually because of selfish interests of the agent (manager).

I hope my answer helps you

3 0
3 years ago
Please help meeee!!!!!
mestny [16]

Answer:

Banks are owned by shareholders, while credit unions are owned by members

Explanation:

Banks are financial institutions established by the founders to make profits. Due to their capital requirements, banks are large corporations owned by the private sector or government. Like other corporations, the owners of a bank are its shareholders.

Large organizations form credit unions to cater to their employees well being. Credit unions are not for profit organizations since they are formed to cater to its members' well beings. It means membership to the credit union is limited to the founding organization's employees unless otherwise stated. The members of the credit unions are its owners.

8 0
2 years ago
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