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3 years ago

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Which of the following best explains why commodity futures contracts are transferable

1 answer:

ioda3 years ago

4 0

The reason why commodity futures contracts are transferable is: <span>They can be bought and sold but the obligation in the contract remains valid.

Commodity futures contract is an agreement to buy or sell a specific asset at a specific price somewhere in the future.
This contract does not specify the name of the person who should buys the asset, so it could be transferable as long as the exchange is still fuiflled.

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Which statement best describes a Schumer box?

posledela

Answer:

The correct answer is letter "D": A standardized way of presenting the key terms of your credit card agreement.

Explanation:

Named after Senator Charles Schumer (born in 1950), the Schumer box is part of the disclosure information financial institutions must provide to debtors so they can be aware of what is the interest and fees subject to the use of credit cards. It is a box mostly present in credit card statements but must be included in any credit card solicitation.

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2 years ago

How can a business support the community

Kryger [21]

Answer:

It can help in many ways one way being they can hold or help hold events in the community.

Explanation:

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3 years ago

Read 2 more answers

Suppose that when Sue’s disposable income is $10,000, she spends $8,000, and when her disposable income is $20,000, she spends $

soldier1979 [14.2K]

Answer:

The correct answer is: 2,000; 0.4

Explanation:

We can write the initial consumption function as,

C = a + bY

8,000 = a + 10,000b

a = 8,000 - 10,000b

The new consumption function is,

14,000 = a + 20,000b

Putting value of a in this function

14,000 = 8,000 - 10,000b + 20,000b

14,000 - 8,000 = 10,000b

b = $\frac{6,000}{10,000}$

b = 0.6

Putting the value of b in the initial function,

8,000 = a + 10,000 $\times$ 0.6

a = 8,000 - 6,000

a = $2,000

The marginal propensity to consume or b is 0.6.

The marginal propensity to save will be

= 1 - 0.6

= 0.4

7 0

3 years ago

Honest Abe’s is a chain of furniture retail stores. Integral Designs is a furniture maker and a supplier to Honest Abe’s. Honest

valentinak56 [21]

Answer:

The cost of capital according to CAPM method for Abe will be 12.46%

Their project will be evaluate with this rate.

Explanation:

It will use the CAPM to evaluate the project, as there is no debt, the WACC is not needed.

$Ke= r_f + \beta (r_m-r_f)$

rf = risk free 0.035

rm = market rate

premium market = (market rate - risk free) = 0.08

beta(non diversifiable risk) 1.12

$Ke= 0.035 + 1.12 (0.08)$

Ke 0.12460 = 12.46%

3 0

2 years ago

Union Local School District has bonds outstanding with a coupon rate of 4.9 percent paid semiannually and 20 years to maturity.

RUDIKE [14]

Answer:

Ans. Price of the bond is $9,250.57

Explanation:

Hi, first we need to establish the semi-annual coupon of the bond and the semi-annual discount rate (YTM semi-annually)

Coupon=10000*(4.9%/2)= $245

To turn the annaul YTM to semi-annual, we have to use the following equation

$YTM(semi-annual)=(1+YTM)^{\frac{1}{2} } -1$

$YTM(semi-annual)=(1+0.056)^{\frac{1}{2} } -1=0.0276$

After all this, we are ready to find the price, here is the math of this.

$Price=\frac{245((1+0.0276)^{39}-1) }{0.0276(1+0.0276)^{39} } +\frac{(245+10000)}{(1+0.0276)^{40} } =9250.57$

Best of luck.

4 0

3 years ago