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irakobra [83]
2 years ago
12

A three-month forward contract on a stock index is trading at $1000. The current index level is $985.1. Assuming a continuously

compounded interest rate of 5%. Additionally, assume that the stock index does not pay any dividends. Which one of the following statements reflects a potential arbitrage strategy:
I. Long the forward contract, short the stock index, and lend at the risk-free rate
II. Short the stock index and lend at the risk-free rate, while entering in a forward contract agree- ment to purchase the asset in three months for $1000.
(a) I alone
(b) II alone
(c) I and II
(d) None of the above
Business
1 answer:
timofeeve [1]2 years ago
4 0

Answer:

d

Explanation:

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If Bangladesh is open to international trade in oranges without any restrictions, it will ___________ tons of oranges. Suppose t
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Question Completion:

Assume that the price per ton of oranges in the international market is $810 and equilibrium is established at the price of $900 for 120 tons.

Answer:

If Bangladesh is open to international trade in oranges without any restrictions, it will ____import____ tons of oranges. Suppose the Bangladeshi government wants to reduce imports to exactly 120 tons of oranges to help domestic producers. A tariff of ____$90____ per ton will achieve this.  A tariff set at this level would raise $___10,800______ in revenue for the Bangladeshi government.

Explanation:

A tariff of $90 per ton will raise the price of a ton of oranges to $900 ($810 per ton as indicated on the question).  When the price is raised to $900 in the domestic market, the quantity demanded will equalize with the quantity supplied at 120 tons.

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What is customer relationship?
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In a perfectly competitive market, Multiple Choice all firms produce and sell a standardized or undifferentiated product. the ou
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all firms produce and sell a standardized or undifferentiated product

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the answer is D

Explanation:

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Answer:

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