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evablogger [386]
3 years ago
5

Dudley Savings Bank wishes to take a position in Treasury bond futures contracts, which currently have a quote of 110 − 100. Dud

ley Savings thinks interest rates will go down over the period of investment. The face value of the bond underlying the futures contract is $100,000.
a. Should the bank go long or short on the futures contracts?
b. Given your answer to part (a), calculate the net profit to Dudley Savings Bank if the price of the futures contracts increases to 110 − 250. (Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16))
c. Given your answer to part (a), calculate the net profit to Dudley Savings Bank if the price of the futures contracts decreases to 109 − 310. (Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16))

Business
1 answer:
djverab [1.8K]3 years ago
6 0

Answer

The answer and procedures of the exercise are attached in the following archives.

Explanation  

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.  

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In a statement of cash flows using the indirect method, an increase in available-for-sale securities due to an increase in their
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Answer:

The correct answer is d) A deduction from net income in determining cash flows from operating activities.

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To get net cash flow using the indirect method we must make adjustments to the net income.

It depends on the account if it is added or subtracted to net income.

In this case, an increase in available-for-sale securities due to an increase in their fair value should be reported as a deduction from net income.

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What are the business reasons behind john deere's offshoring of tractor production from the u. S. To other countries?
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8 0
2 years ago
The questionnaire used in Fiedler's model to determine leadership orientation is called the
Yakvenalex [24]

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3 0
3 years ago
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leonid [27]

Answer:

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Answer and Explanation:

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