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irakobra [83]
3 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]3 years ago
4 0

Answer:

d

Explanation:

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A theater is presenting a program on drinking and driving for students and their parents or other responsible adults. The procee
IceJOKER [234]

Answer:

Maximum people attending program

Adult = 140

Student = 70

Explanation:

Provided information,

Maximum seating capacity in the theater = 210 people

For each pair of adult there must be at-least one student.

Thus, maximum revenue can be calculated as follows:

Fee for each adult = $10

Fee for each student = $5

For each combination of two adult and one student revenue = $10 + $10 + $5 = $25

Total people in each combination = 3

Thus number of combinations possible = \frac{210}{3} = 70

Thus, number of adults attending program = 70 \times 2 = 140

Number of students = 70 \times 1 = 70

Maximum amount = 140 \times $10 + 70 \times $5

= $1,750

Maximum people attending program:

Adult = 140

Student = 70

6 0
3 years ago
On september 30, 2018, grover began preparing a trial balance worksheet. Which step occurs immediately after he prepares the inc
Artist 52 [7]

Balance Sheet occurs immediately after he prepares the income statement.

Balance Sheet:

  • The balance sheet is one of the three main financial statements used when evaluating a business. It offers a snapshot of the assets and liabilities of a corporation as of the publication date.
  • A balance sheet provides you with a quick overview of your company's financial situation at any given time. A balance sheet, along with an income statement and a cash flow statement, can aid business leaders in assessing the financial health of their organization.
  • The balance sheet is a vital instrument used by executives, investors, analysts, and regulators to understand the present financial situation of a firm. The other two types of financial statements, the income statement and the cash flow statement, frequently cohabit with it.

Learn more about Balance Sheet here brainly.com/question/1113933

#SPJ4

4 0
2 years ago
The four major stages of a product life cycle include a. awareness, interest, trial, and adoption. b. prosperity, recession, dep
shepuryov [24]

Answer:its d.

Explanation:

A product is first introdused and after some advertisement and marketing it enters the growth phase every product grows upto the extent that it reaches the maturity phase and when the market is full of competitors and alternative products it enters decline phase and most companies with draw from the market in the last phase of a products lifecycle.

6 0
3 years ago
The bank statement reported an ending balance of $43,860 after deducting $660 in service charges and an addition of $13,500 for
Jet001 [13]

Answer:

Question 1

B. $41,910

Question 2

C. Debit to interest receivable for $90

Explanation:

Question 1

Calculation for the adjusted cash balance

Using this formula

Adjusted cash balance = Cash balance per books +Deposits in transit - Outstanding checks

Let plug in the formula

Adjusted cash balance= $43,860+$16,800-$18,750

Adjusted cash balance= $41,910

Therefore Adjusted cash balance is $41,910

Question 2

Based on the information given The Appropriate journal entry to record accrued interest at the end of its fiscal year on December 31, 2019 will include a:

Debit to interest receivable for $90 which is calculated as:

Interest receivable=[(6%*$18,000*90days/360)/3]

Interest receivable=$270/3

Interest receivable=$90

7 0
3 years ago
The office manager asks you for advice on how to structure a request letter with numerous questions. What advice would you give?
damaskus [11]

Answer:

Itemize or bullet information and questions and use parallel form for balanced construction.

Explanation:An office manager is a person appointed specifically for the purpose of ensuring that an office is organised and managed in such a way to signify best practices. An office manager is known as the person in charge of the Administration of the various segments and Activities of the office.

One of the key roles or requirements of an office manager is to ensure that all communications,letters and correspondence are effectively handled.

An office manager is also well detailed on the itemization, bulleting and the use of parallel forms for balanced construction of letters,memos and other correspondence.

4 0
4 years ago
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