Consider the futures contract written on the S&P 500 index and maturing in one year. The interest rate is 4.2%, and the futu
re value of dividends expected to be paid over the next year is $19. The current index level is 1,433. Assume that you can short sell the S&P index. a. Suppose the expected rate of return on the market is 8.4%. What is the expected level of the index in one year?
The correct answer is letter "E": deliver goods in conformity with the contract.
Explanation:
The perfect tender rule states that in a sales contract of goods, the seller must provide the buyer with the products that match perfectly the buyer's need. This rule is opposed to the <em>substantial performance</em> that states that at least part of the contract agreed must be fulfilled so that it can be considered legit.
A. An inquiring mind and suspension of belief is the correct answer.
Explanation:
Professional skepticism is an inquiring mind that includes critical evaluation, questioning, and staying alert to situations that may indicate possible error because of fraud and mismanagement and also an important evaluation of audit data.
The elements of professional skepticism are questioning mind, autonomy, suspension of knowledge,interpersonal judgment, search for information, and self-esteem.
Professional skepticism performs an important role in the audit and we need professional skepticism to maintain an audit of the expectation.
Product line Strategy is a process whereby different set of related products are differentiated based on features and prices thereby setting products at different price levels in order to allow customer pick the product that most likely fit their needs and purchase power.
For example, Apple offers the iPhone XS and the iPhone XR as premium options. The iPhone 8 and iPhone 7 are then included as additional options. They are all the same product that is Apple product but at varying prices and features.
