Answer:
a. Long
b. $375.00
Explanation:
a. If interest rates decrease over the period of investment, Treasury bond prices will increase. Thus, Dudley Savings Bank should take a long position in the futures contracts on the Treasury bonds. As T-bond prices go up, so will T-bond futures prices.
b. Given a long position:
Net profit = Sale price of futures − Purchase price of futures
= $107,687.50 − $107,312.50 = $375.00
Purchase price of futures = 107 − 100 = 107 10/32% × $100,000 = $107,312.50
Sale price of futures = 107 − 220 = 107 22/32% × $100,000 = $107,687.50
Explanation:
Answer- True.
<span>In agreement with lots of consumer advocates one should
not furnish his/her apartment by going to a rent to own company, this is
because the budget of renting to own is much more costly than the cost of
buying. The finance charges strained out after a while can at times make the
product cost nearly twice or more. </span>
Answer:
14.81%
Explanation:
Data provided in the question:
Average return on stocks = 12.49% = 0.1249
Average risk-free rate = 2.56% = 0.0256
Small-company stocks averaged = 17.37%
Now,
The Risk premium on small company stocks is
= ( Return on small company stocks ) - ( Risk free rate )
or
Risk premium on small company stocks = 17.37% - 2.56%
or
Risk premium on small company stocks = 14.81%
The step transforms the item toward completion (something changes)
The step is done right the first time (not a rework step)
The customer cares (or would pay) for the step to be done.