Answer:
$10 profit
Explanation:
In this question, we are asked to calculate the profit or loss to a short position.
Firstly, we identify that the spot price of market index is $900.
Now, a three months forward contract equals a value of $930.
Raising the index to $920 at the expiry date is obviously a profit to the short position.
To calculate the profit here, we simply subtract the index at expiry date from the three months forward contract.
Mathematically, this is equal to $930-$920 = $10 profit
Answer:
Deluxe should report a liability for unredeemed coupons of $1,204,850
Explanation:
Estimated coupons to be redeemed $501,970
(707,000 * 71%)
Less: Coupons redeemed <u>$261,000</u>
Coupons unredeemed $240,970
X Cost per Coupon <u> 5.00 </u>
Liability for unredeemed Coupons <u>$1,204,850</u>
Answer:D.
Someone is given responsibility for deciding how to meet the need.
Explanation:
Hidden lines in a drawing represent the edges where surfaces meet but are not directly visible. Hidden lines are omitted from pictorial drawings unless they are needed to make the drawing clear
Hope it helps