Answer:
a. The initial remittance is the same as the initial margin requirement of $3,000.
b. The profit is;
= 100 ounces * ( 1,005 - 1,000)
= $500
Return is;
= Profit/ Margin
= 500/3,000
= 16.67%
c. The loss is;
= 100 * ( 1,000 - 998)
= -$200
d. If the futures price declines to $984, what must the speculator do?
Depends on if the maintenance requirement is still below the balance.
= 3,000 - 100 * (1,000 - 984)
= $1,400
This is below the maintenance margin of $1,500 and so the speculator will have to deposit an amount that will take it back to the original margin requirement.
= 3,000 - 1,400
= $1,600
Speculator should deposit $1,600.
e. = 3,000 - 100 (1,000 - 982)
= $1,200
Answer:
i) the intercept is - 124.84 and it is negative because when the income of individuals is zero their consumption = - 124.84 (i.e. consumer borrows 124.84 ).
ii) $25465.16
iii) attached below
Explanation:
Given that the equation is
^cons = -124.84 + .853 * inc
<u>i) Interpret the intercept in this equation and comment on its sign and magnitude</u>
intercept : the intercept is - 124.84 and it is negative because when the income of individuals is zero their consumption = - 124.84 (i.e. consumer borrows 124.84 ).
The slope = .853 is positive because consumption is will increase by 0.853 whether the income rises or decreases by the value of 1
<u>ii) Determine the predicted consumption when family income = $30000</u>
^cons = -124.84 + 0.853 * ( 30000 )
= 25465.16
hence when family income = $30000 the predicted consumption = 25465.16
<u>iii) Draw a graph of the estimated MPC and APC ( inc on the x-axis )</u>
MPC = 0.853 ( constant )
APC = Cons / inc
attached below is the required graph
false, higher gear is used for power not for speed
Answer: $5020
Explanation:
The family's income tax savings if the son has no other income and takes a $12,400 standard deduction will be calculated as:
Explanation:
Tax savings from deduction = ($14,000 × 37%) = $5180
Less: Tax on child's taxable income = 10% × ($14,000 - $12,400) = 10% × $1600 = $160
Family's income tax savings = $5180 - $160 = $5020
What is fascinating about his story is that he invented the stethoscope because he was shy. At that time doctors generally listened to heartbeats by placing an ear directly on a patient’s chest. When he was examining a young woman complaining of heart problems, he thought it was improper to place his ear on her chest, especially as she was overweight.
