Ask question

Ask question

All categories

2 years ago

12

The price of gold is currently $1,200 per ounce. The forward price for delivery in one year is $1,400. An arbitrageur can borrow

money at 6% per annum. What should the arbitrageur do? Assume that the cost of storing gold is zero and that gold provides no income.

1 answer:

max2010maxim [7]2 years ago

4 0

Answer:

I Dont know

Explanation:

sorrrrrrry I will try next time

You might be interested in

The things that are most important to you are your top __________. A. niceties B. priorities C. peculiarities D. similarities

Svetlanka [38]

The things that are most important to you are your top priorities

8 0

3 years ago

Read 2 more answers

A convenience store owner is contemplating putting a large neon sign over his store. It would cost $50,000, but is expected to

Radda [10]

Answer: <em>No, since the value of the cash flows over the first two years are less than the initial investment</em>

Explanation:

value of cash flows for the first two years = $48,000 (24,000x2)

Initial Investment = $50000

Because the additional $48,000 profit during the two year payback is not grater than the $50,000 purchase, they should not put the large neon sign up.

4 0

3 years ago

An investor buys 400 shares of stock in a fund when the net asset value is $23.79 and the offer price is $23.89. The investor

Airida [17]

Answer:

I believe the best answer would be A. $10,580

Explanation:

400 x 23.89 = $9,556. 400 x 50.34 = $20,136

$20,136 - $9,556 = $10,580

8 0

3 years ago

12-3. (Break-even point and selling price) Simple Metal Works, Inc. will manufacture and sell 300,000 units next year. Fixed cos

aev [14]

Answer:

Selling price= $5.08

Explanation:

Giving the following information:

Number of units= 300,000

Fixed costs= $350,000

Desired profit= $250,000

Variable cost rate= 0.65

<u>First, we need to calculate the unitary contribution margin using the break-even point formula:</u>

Break-even point in units= (fixed costs + desired profit)/ contribution margin per unit

300,000 = (350,000 + 250,000) / contribution margin per unit

300,000 contribution margin per unit = 600,000

contribution margin per unit= 600,000/300,000

contribution margin per unit= $2

<u>If the variable cost rate is 0.65, then:</u>

Unitary varaible cost= 2/0.65= $3.08

Selling price= contribution margin per unit - unitary varaible cost

Selling price= 2 - (-3.08)

Selling price= $5.08

5 0

2 years ago

Four perspectives are integrated to form the balanced scorecard framework. the financial perspective focuses on the view of the

Andreas93 [3]

Four perspectives are integrated to form the balanced scorecard framework. the financial perspective focuses on the view of the firm by the customer.

The four perspectives of the Balanced Scorecard are Learning and Growth, Business Process, Customer Perspective, and Financial. These four areas, also called legs, form the company's vision and strategy.

A strategy-based performance management system that typically identifies goals and actions from four different perspectives: financial perspective, customer perspective, process perspective, and learning and financial perspective.

The Balanced Scorecard helps you strategically manage your organization. The Balanced Scorecard is based on four perspectives including financial, business process, customer, and organizational capabilities. This allows companies to discover their shortcomings and develop strategies to overcome them.

Learn more about financial perspective at

brainly.com/question/14901320

#SPJ4

5 0

1 year ago