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
Lubov Fominskaja [6]
3 years ago
8

A futures contract on a 30 day Eurodollar time deposit is currently selling at an IMM index of 95.75 percent. The IMM index on a

30 day Eurodollar time deposit for immediate delivery is 95.10 percent. What is the basis risk for the futures contract
Business
1 answer:
kolezko [41]3 years ago
5 0

Answer:

Basis risk for the future contract is 0.65%

Explanation:

Basis risk is the difference in spot price and future price of an hedged asset. It is the difference between the price price of an hedged asset and price of the asset serving as the hedge.

Basis risk = Futures price of contract − Spot price of hedged asset

Basis Risk = Future IMM index - Spot IMM index

Basis risk = 95.75% - 95.10%

Basis risk = 0.65%

You might be interested in
Which phase of decision making finds or recognizes a problem?a) Intelligenceb) Designc) Choiced) Implementation
Mashcka [7]

Answer:

a) Intelligence

Explanation:

Intelligence phase is the first phase in decision making process. It basically attempts to first identify what problems do the organization faces. What are the relevant opportunities for the organisation.

Performing the basic SWOT analysis is the basic aim of this stage. Though it  is not the complete SWOT analysis. But it identifies the opportunities, the data is collected then, and then the possible problems and hindrance are identified.

6 0
4 years ago
DeAngelo did solid research before founding a food-tour company in a coastal community. He used information gained by his compet
polet [3.4K]

Answer:

Programmed decisions.

Explanation:

Decision-making is a process of selection from a set of alternative courses of action,which is thought to fulfill the objectives of the decision problem more satisfactorily than others.

Decision making can be regarded as the cognitive process resulting in the selection of a course of action among several alternatives. Every decision making process produces a final choice.

Types of Decision Making:

• PROGRAMMED DECISIONS : A programmed decision is one that is fairly structured or recurs with some frequency.

A decision that is repetitive and routine, in which a definite method for its solution can be established. Examples: pricing standard customer orders, determining billing dates, recording office supplies etc.

• NON-PROGRAMMED DECISIONS : Non-programmed decisions are relatively unstructured and may occurs much less often. They are made in response to situations that are unique, are poorly defined and largely unstructured.

6 0
3 years ago
What effects did the Embargo Act of 1807 have on American industry? increased international competition forced U.S. to become mo
Anettt [7]

Answer:

forced U.S. to become more self-reliant

Explanation:

The 1807 Embargo Act in the short run resulted in very serious negative effects, but in the long run it helped the American economy to be more self-reliant.

Some of the negative effects on the short run include:

-agricultural products' prices and earnings decreased

-shipping-related industries were devastated

-existing markets were wrecked

-unemployment increased

-smuggling was widely endorsed by the public

-prices of domestic shipping increased

-imports and exports decreased

As a very positive effect, specially on the long run, it increased reliance on domestic manufacturing .

4 0
3 years ago
Read 2 more answers
How does applying econometrics to economics validate economic decisions for an organization? support your response with an examp
nordsb [41]
<span>By utilizing economic theories, for example, Frequency disseminations, likelihood and likelihood conveyances, actual impedance, straightforward and various relapse investigation, synchronous conditions models and Time arrangement techniques, econometrics utilizes these speculations, math and statistical obstructions to evaluate the financial hypotheses.</span>
8 0
3 years ago
Mark is an excellent cook. He does not have any formal training but learned to cook by following the recipes of several famous c
Katarina [22]
A invisible hand is the answer.
3 0
3 years ago
Read 2 more answers
Other questions:
  • The student center on campus has burritos, bagels, or burgers for lunch, and they all cost the same. you decide to have a burger
    14·1 answer
  • Although many factors affect the value of real property, what is the primary driver in determining the value of real property?
    15·1 answer
  • Assume that we have the following data:
    7·1 answer
  • The drug enforcement agency (dea) is a example of ___?
    15·1 answer
  • Which of the following statements is false? (2 points) If a tangible asset has a finite life, it should be amortized Goodwill is
    12·1 answer
  • The quality of a soil is most directly related to ________.
    15·1 answer
  • The purpose of organizational behavior is to ________.
    14·1 answer
  • the accounts receivable account has a total debit postings of 1900 and credit postings of 1100.The balance of the account is a/a
    8·2 answers
  • Analysis of Receivables Method At the end of the current year, Accounts Receivable has a balance of $420,000; Allowance for Doub
    12·1 answer
  • ARMs help lenders combat unanticipated inflation changes, interest rate changes, and a maturity gap.
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!