Answer:
70.1754386
Explanation:
The calculation of the number of the futures contract to sell as follows:
Portfolio value $1,000,000
Face value $100
Units. $10,000
Maturity portfolio. 5
Modified duration. 4
Modified duration of T bonds 9
Yield on portfolio. 0.000015
Yield on T bonds. 0.00001
Future price of the bonds $95
Loss of portfolio. $60
Decline in fut T bond price $.0086
Per value contract. $86
Number of future contract to sold 70.1754386
Answer
In a mixed market economy, the typical way the government can reduce unemployment is : The government can pay for projects to create work
Explanation
In a mixed market economy, part of the economy is left to the free market and part of it is managed by the government. In a mixed economy, private enterprise run most businesses and the government later intervene in areas like provision of public services( education, health care and waste control), and in the regulation (legal right to private property). Most modern economies are mixed where the means of production are shared between the private and public sectors.
D. can be flipped for profit and E. has a maturity date
Cost per unit
(300,000÷15,000)+20=40
Current profit
50×15,000−40×15,000=150,000
Profit change
60×15,000−40×15,000=300,000
units will knoll need to sell for profit to remain the same as before the price change is
(150,000+300,000)÷40=11,250
Answer:
A. We should expect higher interest rates and lower stock prices.
Explanation:
Producer price index refers to the price that producers recieve for their products. When there is an increase in PPI it means producers are receiving more revenue.
Increased revenue will result in more money in circulation. To regulate the excess money the monetary authorities will increase interest rate to reduce borrowing and by extension money in the economy.
Because there is now a need to get more funds by the companies, they will lower share prices to make them attractive to prospective investors.
