Answer:
<u>Future Price</u>
F0: 126.89
F3: 113.13
F4: 113.41
<u>Value of the contract:</u>
a) zero (by definition)
b) -13
c) -13
Explanation:
<em>forward price:</em>
being S the spot rate
time 9 months and
rate 2% <u>continuous componding</u>
As the rate is continuous we calculate using the e number instead:
F = 125 x 1.015113065
F = 126.8891331 = 126.89
<u>3th month into the contract:</u>
F = 113.1256187 = 113.13
<u>4th month</u>
F = 113.4087866 = 113.41
<u>value of the contract</u>
at third month:
Vt = St - F0
Vt = 112 - 125 = -13
at fourth month
Vt = 112 - 125 = -13
<span>If a plant asset was purchased on January 1 for $100,000 with an estimated salvage value of $20,000 at the end of its useful life. the current year's depreciation expense is $10,000 calculated on the straight-line basis and the balance of the accumulated depreciation account at the end of the year is $50,000. the remaining useful life of the plant asset is $56,000 due to accumulated depreciation account.</span>
Participative
Management<span> is giving workers an opportunity to
participate or involve in the decision making process of the management. While in Employee empowerment
workers or employees are given a certain degree of sovereignty and
responsibility for decision-making regarding their specific organizational
tasks. (provide input to decision makers;
to make decision)</span>
If Joe or Rachel dies in 2006-2008, there will be no federal estate tax liability since there is an unlimited marital deduction for the surviving spouse. Only when both die there will be an estate tax liability over the $2 million exemption amount.
A.the first graph all the way to the left, hope this helped :P
