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Agata [3.3K]
3 years ago
15

"The spot price of the market index is $900. A 3-month forward contract on this index is priced at $930. What is the profit or l

oss to a short position if the spot price of the market index rises to $920 by the expiration date"
Business
1 answer:
Mademuasel [1]3 years ago
8 0

Answer:

$10 profit

Explanation:

In this question, we are asked to calculate the profit or loss to a short position.

Firstly, we identify that the spot price of market index is $900.

Now, a three months forward contract equals a value of $930.

Raising the index to $920 at the expiry date is obviously a profit to the short position.

To calculate the profit here, we simply subtract the index at expiry date from the three months forward contract.

Mathematically, this is equal to $930-$920 = $10 profit

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Answer:

17%

Explanation:

The actual return which stockholder receives on the average common equity is return on common stockholder's equity.

Return on Common Stockholder Equity = (Net Income - Preferred dividend) / Average common stockholders equity

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Return on Common Stockholder Equity = ($298,000 - $60,000) / $1,400,000

Return on Common Stockholder Equity = 0.17 = 17%

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3 years ago
The produces computers and sells them to . At the same time produces cars and sells them to the . Suppose there is an appreciati
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Correct/Complete Question:

The United States produces computers and sells them to Russia. At the same time, Russia produces cars and sells them to the United States. Suppose there is an appreciation in the dollar. This will​ cause:

Answer:

increase in imports into the United States and decrease in exports to Russia​ will occur, which will cause a decrease in aggregate demand and real GDP

Explanation:

Aggregate demand is the total demand for a good or service in an economy at a given time. Real GDP on the other hand can be defined as an inflated value of goods and services in an economy at a certain period of time. An inflation of the dollar will increase imports into the united states as it would decrease the exports to Russia. This because the appreciation of the dollar will affect the prices of both computers and cars. And as such will

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Answer:

the process capability index for the process is 0.4761

Explanation:

The computation of the process capability index for the process is shown below:

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