1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
slava [35]
2 years ago
9

Delivery of stock index futures a. is never made. b. requires delivery of 1 share of each stock in the index. c. is made by a ca

sh settlement based on the index value. d. is made by delivering 100 shares of each stock in the index.e. is made by delivering a value-weighted basket of stocks.
Business
1 answer:
jolli1 [7]2 years ago
6 0

Answer: c. is made by a cash settlement based on the index value

Explanation:

Stock index futures are settled by cash sort of like index options.

This means that there is no delivery of the actual underlying asset at the end of the contract.

The cash / profit is determined by the starting and ending prices of the futures contract.

You might be interested in
Which bond recommendation would be the MOST safe for an individual who seeks income that is free from federal income tax?
12345 [234]

Answer:

AA-rated revenue bond that is escrowed to maturity.

Explanation:

AA-rated revenue bond that is escrowed to maturity, is the bond recommendation for an individual who seeks income that is free from federal income tax. Escrowed to maturity bond are pre-funded municipal bond and it is backed by the government. The Issuer invests the new bond´s income too high credit securities and also issuer hold proceeds from the new bond issue in a separate escrow account to pay off existing bond when it matures.

3 0
2 years ago
The is the interest rate that a firm pays on any new debt financing. Andalusian Limited (AL) can borrow funds at an interest rat
valina [46]

Answer:

5.34%

The correct option is C,5.60%

Explanation:

The are two requirements here,the first is after cost of debt for the first part of the case study and after tax cost of debt for the second part of the scenario:

1.after tax cost of debt=pretax cost of debt*(1-t)

pretax cost of debt is 9.7%

t is the tax rate at 45% or 0.45

after tax cost of debt=9.7%*(1-0.45)=5.34%

2.

The pretax cost of debt here is computed using the rate formula in excel:

=rate(nper,pmt,-pv,fv)

nper is the number of times the bond pays coupon interest which is 15

pmt is the annual coupon interest receivable by investors i.e $1000*12%=$120

pv is the current market price of the bond which is $1,136.50

fv is the face value of the bond at $1000

=rate(15,120,-1136.50,1000)

rate =10.19%

after tax cost of debt=10.19% *(1-0.45)=5.60%

7 0
3 years ago
assume bell computer company operates in a perfectly competitive market producing 5,000 computers per day. at this output level,
Agata [3.3K]

In a perfectly competitive market bell computers will cause profits to increase by producing one more.

A hypothetical market system is referred to as perfect competition. Perfect competition offers a valuable model for illustrating how supply and demand influence pricing and behaviour in a market economy, despite perfect competition seldom occurring in actual markets.

One of the most efficiently operating markets is one with perfect competition, when a large number of buyers and suppliers cooperate perfectly. Sadly, it is a hypothetical event that does not occur in the real world. But in order to guarantee a fair price for all goods and services, markets should strive to be as similar to this type of market as feasible.

Learn more about perfectly competitive market here:

brainly.com/question/13961518

#SPJ4

6 0
1 year ago
The following financial ratios and calculations were based on information from Kohl Co.'s financial statements for the current y
creativ13 [48]

Answer:

Kohl's Average total Assets were $1,000,000

Explanation:

1.

Asset Turnover = Net Sales / Average fixed Assets

Net Sales = Asset Turnover x Average fixed Assets

2.

Account Receivable Turnover = Net Sales / Average Account receivable

Net Sales = Account Receivable Turnover x Average Account receivable

According to given condition

Asset Turnover x Average fixed Assets = Account Receivable Turnover x Average Account receivable

2 X Average fixed Assets = 10 X $200,000

Average fixed Assets = $2000,000 / 2

Average fixed Assets = $1,000,000

7 0
3 years ago
Question 10 of 10 Which of the following is the largest student organization and focuses on developing business leaders?
siniylev [52]

Answer:

Alpha Kappa Psi is among the largest business student organizations on campus. Known for developing principled business leaders, Alpha Kappa Psi is the world's oldest business fraternity.

4 0
1 year ago
Other questions:
  • The team wanted to prevent customers from mistakenly choosing the hottest hot sauce and risking injury.Which of the following wo
    12·1 answer
  • When does a student need to file the FASFA?
    12·1 answer
  • Carter Containers sold marketable securities, land, and common stock for $30 million, $15 million, and $40 million, respectively
    9·1 answer
  • Suppose an inventor is interested in the proportion of local consumers who would be interested in purchasing her new product. If
    15·1 answer
  • The service profit chain is the service sequence from employees to customers to profit. According to this concept, the company's
    9·1 answer
  • What is a credit limit?
    7·1 answer
  • The Cornelius Company has an ROE of 14.4 percent and a payout ratio of 30 percent. What is the company’s sustainable growth rate
    15·1 answer
  • The advantages of personal financial planning include:
    11·1 answer
  • Jose and Zola want to purchase their first home. Jose makes $23.50 an hour and works 40 hours per week. Zola makes $21.50 an hou
    10·1 answer
  • Which is not an advantage of a savings account?
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!