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
Shtirlitz [24]
3 years ago
15

Suppose that there are no storage costs for crude oil and the interest rate for borrowing or lending is 5% per annum. How could

you make money if the June and December futures contracts for a particular year trade at $60 and $66, respectively
Business
1 answer:
mario62 [17]3 years ago
5 0

Answer:

$4.50

Explanation:

In order to make a profit from the futures contracts, it would be appropriate to take a long position in the  June futures contract(buy) and take a short position in the December futures contract.

The investor would borrow $60 today which would necessitate paying back $60 plus a half-year in interest payment.

loan repayment=$60*(1+5%/2)=$ 61.50  

In December, sell crude oil at $66 and repay the loan principal and interest

profit=$66-$61.50=$4.50

You might be interested in
The total amount that you owe for income tax in one year is your tax
Keith_Richards [23]
Yes,yes, it is.

making it longer so i can answer
4 0
3 years ago
Why is accounting hard?
hjlf

Answer:

Accounting can be tough. ... The course load is quite intense, with classes in mathematics, finance, business, and accounting. While some concepts can be challenging, by studying the material and taking the time to make sure you fully understand accounting principles, you can be successful.

<h3>Please mark as brainliest</h3>
6 0
3 years ago
Dan kim does a lot of customer research on his ideas for new products before actually making a prototype. in the new-product dev
GarryVolchara [31]
<span>the part of the development process where Dan Kim does his research on his ideas is called innovation which is where new ideas are transformed into new products</span>
7 0
3 years ago
The 2016 financial statements of CVS Health Corporation reported the following information (in millions): 2016 2015 Net sales $1
Serggg [28]

Answer:

option (D) 10.34

Explanation:

The  inventory turnover ratio for 2016 will be given as:

= [Cost of goods sold ] ÷ Average inventory

also,

Cost of goods sold in 2016 = $148,669

Average inventory = [ 2015 inventory + 2016 inventory ] ÷ 2

= [ 14,001 + 14,760 ] ÷ 2

= 28761 ÷ 2

= 14,380.5

Therefore,

The  inventory turnover ratio for 2016 = $148,669 ÷ 14,380.5

= 10.34

Hence,

The answer is option (D) 10.34

8 0
3 years ago
Kyoko's Performance Pizza is a small restaurant in Detroit that sells gluten-free pizzas. Kyoko's very tiny kitchen has barely e
Dvinal [7]

Answer: variable; fixed

Explanation: In the short run, Kyoko's workers are variable inputs. This is because, the number of workers needed can be varied based on production needs, even in the short run. Examples are energy, labor etc.

Kyoko's ovens are fixed inputs. Fixed inputs are those inputs whose quantities cannot be changed in the short run by a firm as it seeks to change the quantity of output produced. Examples are equipment, land and building.

6 0
4 years ago
Other questions:
  • You sit on the board of a public corporation. Your CEO has proposed taking steps to offset the carbon impact of your​ company's
    9·2 answers
  • Summary financial information for Paragon Company is as follows. Dec. 31, 2014 Dec. 31, 2013 Current assets $ 203,600 $ 254,000
    5·1 answer
  • Constant cost industries:
    5·1 answer
  • James was a partner in a large firm. He died unexpectedly. His son, Frank, wanted to take over for his father in the partnership
    6·1 answer
  • At December 31, 2015, Agler Company had 1,200,000 shares of common stock outstanding. On September 1, 2016, an additional 400,00
    13·1 answer
  • A company that makes which of the following types of products would best be suited for a job costing system?a. Fruit juice b. Ba
    5·1 answer
  • Stubbs Company uses the perpetual inventory method. On January 1, Year 1, Stubbs purchased 400 units of inventory that cost $8.0
    15·1 answer
  • Which of the following is generally not one of the five processes integrated into an enterprise project management methodology?
    11·1 answer
  • Wine and Roses, Inc. offers a 5.5 percent coupon bond with semiannual payments and a yield to maturity of 6.32 percent. The bond
    13·1 answer
  • Hamasaki Company owns 30% of CDW Corp. stock and has significant influence. Hamasaki received $6,500 in cash dividends from its
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!