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Ne4ueva [31]
4 years ago
12

A SHORT forward contract that was negotiated some time ago will expire in three months and has a delivery price of $40. The curr

ent forward price for three-month forward contract is $42. The three month risk-free interest rate (with continuous compounding) is 8%. What is the value of the short forward contract?
a. +$2.00
b. -$2.00
c. +$1.96
d. -$1.96
Business
1 answer:
GuDViN [60]4 years ago
4 0

Answer:

-$1.96

Explanation:

A future contract is defined as an agreement to make a purchase at a certain time in the future at a particular price.

While present contract is executable immediately.

In this scenario if we want to negotiate today the price of the contract will be $40, while if we negotiate a forward contract for 3 months it will be $42

Therefore value of contract is present value of 40 - 42= -$2

It is given

Rate= 80%= 0.08

Time= 3 months= 3/12= 0.25 years

The present value can be calculated as

Value of present contract= -2e^(0.08* 0.25)

Value of present contract= -$1.96

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Molly has been directed by her regional marketing manager to cut prices on seasonal items, place an ad in the local paper, and t
melamori03 [73]

Answer:

Marketing Mix

Explanation:

According to my research on the strategic marketing planning process, I can say that based on the information provided within the question Molly is engaged in the Marketing Mix step of this process. This step focuses on Product Development, Pricing, Promotion, and Distribution. Which the ones in bold are what Molly is doing.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

5 0
3 years ago
What total unrealized holding gain would beresford report in its 2021 income statement relative to its investments in bonds?
Airida [17]

Total unrealized holding gain would Beresford report in its 2021 income statement relative to its investments in bonds is $36,600.

Unrealized holding gains are increases in the value of assets that a company or individual continues to hold.

This gain has not yet been reported on the entity's income statement as a realized gain.

The gain is considered realized once the asset is sold.

Assets are frequently held even after a gain in value has occurred, either because the owner expects another gain or because the owner does not want to pay taxes on the gain.

Therefore, total unrealized holding gain is the difference between the fair value of trading securities on 12/31/2021 and at 12/31/2020.

For the figures used refer to the attached image.

total unrealized holding gain = (76000 - 65000) + (98100 - 67000) + (58500 - 64000)

                                            = 11000 + 31100 - 5500

                                            = $36,600

Hence, the correct answer is $36,600.

Learn more about holding gain:

brainly.com/question/16629295

#SPJ4

8 0
1 year ago
Exceptional Events provides event management services. The company has three​ employees, each assigned to specific customers. Th
MariettaO [177]

Answer:

Net operating income= $550

Explanation:

Giving the following information:

Maribel:

Sales= $6,000

Variable cost= $5,900

Contribution margin= $100

Jessica:

Sales= $10,700

Variable cost= $7,100

Contribution margin= $3,600

Timothy:

Sales= $12,350

Variable costs= $12,000

Contribution margin= $350

The total fixed costs for the month amount to $3,500.

Net operating income= contribution margin - fixed costs

Net operating income= (100 + 3,600 + 350) - 3,500= $550

6 0
3 years ago
In 2019, Britt drove her automobile 16,200 miles for business. She incurred $900 in gas expenses and $235 in tolls associated wi
jeka57 [31]

Answer:

$9,631

Explanation:

In 2019, the Standard mileage rate deduction for the business purposes is 58 cents per mile.

Therefore,

Her deduction is as follows:

= (No. of miles drove × 58 cents per mile) + Tolls associated with the business mileage

= (16,200 × 58 cents per mile) + $235

= 9,396 + 235

= $9,631

Therefore, by using the standard mileage method, her deduction is $9,631.

4 0
3 years ago
Suppose you have a monthly entertainment budget that you use to rent movies and purchase cds. you currently use your income to r
Lelu [443]
You are not maximizing utility, because the marginal utility per dollar spent renting movies is not equal to the marginal utility per dollar spent on​ CDs. We will maximizing utility when the consumers decide to allocate their money incomes so that the last dollar spent on each product purchased yields the same amount of extra marginal utility.
5 0
4 years ago
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