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
Natalka [10]
3 years ago
7

Many commodities have futures markets associated with them. A futures market is a prediction market that aggregates information

based on uncertain events that may impact the market, and buyers commit to a financial contract in which they obligate themselves to purchasing a fixed quantity of the asset at a specified price on a certain date. In April, 2019, the national average price of unleaded gasoline was $2.87 per gallon. At the same time, the futures price for a June contract on unleaded gasoline was $2.07 per gallon.
A. The forecasted price in the futures market suggests that unleaded gasoline prices will_____by June of 2019.
B. If the information transmitted in this market is accurate and unbiased, then the predict____the actual price we will see in June.
Business
1 answer:
arlik [135]3 years ago
5 0

Answer:

Answer is explained in the explanation section below.

Explanation:

Solution:

a.

Unleaded fuel prices are expected to fall by June 2019 according to future demand forecasts.

Since the future price is less than the spot price, it would be better for long-term buyers who can wait for the price to increase because the market is currently in BACKWARDATION. This happens due to a short-term disparity in demand and supply.

b.

If the information in this sector is reliable and impartial, the expected June price will most likely be similar to the real price we will see in June.

It is reliable if the market is accurate and impartial, i.e. the market research on which knowledge flows.

The prices of goods are either integrated or expressed in such a flow of knowledge.

So, if it's unbiased and reliable, the forecast prices would be reasonably similar to the real future price.

You might be interested in
If Sasha works for 6 hours she can rent
zloy xaker [14]

Based on the number of apartments that Sasha can rent at 6 and 7 hours, her marginal benefit in the 7th hour is<u> 3 apartments. </u>

<h3>What is Sasha's marginal benefit?</h3>

This refers to the additional number of benefits that Sasha gets when she works an extra hour.

As a result of working one extra hour from 6 hours to make it 7 hours, the additional benefit Sasha gets is:

= 12 - 9

= 3 apartments.

Find out more on marginal benefits at brainly.com/question/11937697.

5 0
2 years ago
What is a public sector wage bill ?
djverab [1.8K]

Answer:

Equal pay for equal work

7 0
3 years ago
Read 2 more answers
Which deduction from your paystub is paid back later?
Charra [1.4K]
Federal Income tax is paid back later, it is a tribute that taxes the income of natural persons in the United States. It is applied by the Federal Government and it is returned if the tax they owe is less than the sum of the total amount of the withholding tax and the estimated taxes they pay.
4 0
3 years ago
Read 2 more answers
Marin Company's accounts receivable arising from sales to customers amounted to $88000 and $77000 at the beginning and end of th
anzhelika [568]

Answer:

Marin Company

Exclusive of the effect of other adjustments, the cash flows from operating activities to be reported on the statement of cash flows is

$345,000

Explanation:

a) Data and Calculations:

Accounts Receivable (Beginning) $88,000

Accounts Receivable (Ending) $77,000

Increase in Cash received from customers = $11,000

b) Income reported on the income statement for the year = $334,000

Increase in Cash received from Customers =                               11,000

Cash flows from operating activities to be reported =           $345,000

c) The Accounts Receivable reduced from $88,000 to $77,000.  This implied that some customers settled their accounts.  Therefore, there was inflow of cash from customers.  This increases the cash flows from operating activities.  This is why the difference is added to the Income as per income statement as a change in working capital.

5 0
3 years ago
A $150 petty cash fund has cash of $54 and receipts of $83. the journal entry to replenish the account would include a
Ksju [112]
The correct answer is option b, debit to cash short and over for $13. The petty cash fund is a debit account, meaning it increases with entries posted on the debit side and decreases with entries posted to the credit side. Replenishing the fund here means injecting cash to reach the initial $150. To obtain the replenishing amount, you just subtract the debit entries in the fund $54 and $83 from the $150, i.e. $150 - ($54 + $83) = $13.
3 0
3 years ago
Read 2 more answers
Other questions:
  • Four investors bought a real estate asset together and decided to divide the profits equally. Investor A invested $200,000; inve
    13·1 answer
  • The Cutting Department of Sheffield Company has the following production and cost data for July.
    10·1 answer
  • The City issued $2 million in general obligation bonds to acquire a fleet of vehicles for the Central Motor Pool Internal Servic
    10·1 answer
  • What is justice? are we achieving it? and what are the costs of justice (cost/benefit analysis)? keep in mind, costs can be reco
    12·1 answer
  • Measures to ensure environmental sustainability
    10·1 answer
  • Hiku Inc. developed a superior touch screen technology for tablet computers that enabled multiple users to operate the screen at
    13·1 answer
  • Treasury bonds paying an 8% coupon rate with semiannual payments currently sell at par value. What coupon rate would they have t
    5·1 answer
  • The Owen’s Company budgeted sales of 45,000 printers at $95 per unit last year. Variable manufacturing costs were budgeted at $4
    12·1 answer
  • Concord Sports sells volleyball kits that it purchases from a sports equipment distributor. The following static budget based on
    14·1 answer
  • When screening prospective new ventures, venture capital firms must consider the nature of the proposed industry Which of the fo
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!