Answer:
a. $2125
b. $2025
c. there is an arbitrage opportunity.
Explanation:
a. St = So x (1+ rm)-D
So = current index price = 2000
rm = return on market = 8%
D = dividends = $35
inserting into the formula:
2000x(1+0.08)-35
= $2125
b.
So x (1+rf)-D
rf = 3%
2000 x (1+0.03)-35
= $2025
c. yes there is an arbitrage opportunity. the investor should go into contract with an exercise price of 2125dollars then short sell asset in future and after this, buy back after at future market price. since actual future price is 2012 and price expected is 2125.
Answer:
diversification
Explanation:
because it is a technique that reduce risk by allocating investments across various industries
Answer:
Peripheral route.
Explanation:
The peripheral route to persuasion occurs when the listener decides whether to agree with the message based on other cues besides the strength of the arguments or ideas in the message.
Transfer payment is a payment made by : Government, but not in exchange for a currently produced good or service.
<h3>What is transfer payment?</h3>
Transfer payment refers to a public expenditure, which is made purposely for unemployment compensation other than procuring goods or services. It is money or other aid that is given by a government without any good or service in return.
Examples of transfer payments include:
- Welfare
- Financial aid
- Social security
- Government subsidies for certain businesses.
Hence, transfer payment is a payment made by government, but not in exchange for a currently produced good or service.
Learn more about transfer payment here: brainly.com/question/7176766
Answer:
The amount of cash received by the magazine company as advance payments from customers during the year 2013 must have been $14,400.
Explanation:
Let cash received from customers be x
:
$12,700 + x - $14,800 = $12,300
x = $14,400
Therefore, The amount of cash received by the magazine company as advance payments from customers during the year 2013 must have been $14,400.
