The forward contract's initial value is 50.01 and its forward price is 1.9540.
<h3>Forward Contract: What is it?</h3>
A forward contract is a sort of derivative in which the underlying asset is sold at a defined price and at a later time. The contract includes the writer and the buyer as the two parties. Interest, currency exchange rates, metal, stocks, etc. are examples of the underlying asset in a derivative contract.
Given:
Dividend = $1 per share
Stock price = $50
Risk-free rate = 8% per annum
Present value of income from security= ( dividend X 
) + (dividend X 
)
= ( 1 X 
) + (1 X 
)
= (1 X 0.98676) + (1 x 0.96722)
= 0.98676 + 0.96722
= 1.9540
Forward Price = (stock price - present value of income from security) X 
= ( 50- 1.9540) X 
= 48.046 X 1.041
= 50.01
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Answer:
right, increase, increase, decrease
Explanation:
In simple words, a decrease in taxes will result in more disposable income to the individuals which will further lead to increase in demand. Increase in demand will shift the overall economy curve to grow leading to increase in output and consumption.
As per the crowding out effect, the decrease in taxes will increase demand and spending leading to inflation which causes money to value less. Hence individuals will mostly consume their income and will invest less.
Answer:
$4,800
Explanation:
At 100 units output
Fixed cost= $500
Total cost=$4,500
At 101 units output
Fixed cost=$500
Fixed cost remains constant during production process
Marginal cost= $300
Total cost(101 units)= TC(100 units) + marginal cost of 101 units
= $4,500+$300
TC(101 units)= $4,800
Answer:
The definition has always been listed throughout the clarification section downwards as per the query.
Explanation:
One such trade infuses the community with extra cash as well as raises the Federal Reserve Business's resources.
The Changes In accounting estimates law implemented here seems to be:
⇒ 
- Above that, the trade would have an impact mostly on income statement including its Federal Reserve System for almost the similar positive and negative number, without any adjustment mostly on the liability side.
- Although the trade will have a two-way influence on the investment banking institutions:
- Everything always raises investments towards commercial banks, leading to increased obligations, as well as increases the accounts receivables with financial firms, leading to an increase throughout reserves.
- And whether the capital expenditure acquired by that of the Central Bank takes into account another commitment including its financial institutions, then perhaps the expenditure including its financial institutions is decreased as well as the free margin requirement including its banking institutions is raised, consisting in something like a simultaneous decline or rise throughout reserves.
