In the absence of dividends, to create the same payoffs as short selling the Underlying asset, we can use forward contracts by Borrowing the current spot price of the underlying and taking a short position in the forward contract Borrowing the current spot price of the underlying and taking a long position in the forward contract Lending the current spot price of the underlying and taking a short position in the forward contract Lending the current spot price of the underlying and taking a long position in the forward contract
Which of the following is NOT true about the normal forward price? It should be what I expect the spot price of the underlying to be at maturity It is more than the prepaid fonward price It is on average less than the what I expect the future spot price of the underlying to be It is determined when signing the forward contract, even though the actual trade of the underlying doesn't take place until maturity
Answers
The statement "Lending the current spot price of the underlying and taking a long position in the forward contract" is NOT true about the normal forward price. The correct approach to create the same payoffs as short selling the underlying asset using forward contracts is to borrow the current spot price of the underlying and take a short position in the forward contract.
When short selling the underlying asset, an investor sells borrowed shares with the expectation of buying them back at a lower price in the future, thus profiting from a decline in the asset's value. To replicate the payoffs of short selling using forward contracts, the investor borrows the current spot price of the underlying asset and takes a short position in the forward contract.
In contrast, "Lending the current spot price of the underlying and taking a long position in the forward contract" is not a valid approach. Lending the spot price would involve providing a loan of the underlying asset, which is different from short selling.
Regarding the normal forward price, it represents the expected future spot price of the underlying asset at maturity. It is determined when signing the forward contract, even though the actual trade of the underlying doesn't take place until maturity. The normal forward price can be influenced by factors such as interest rates, dividends, storage costs, and market expectations.
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Related Questions
Question 1 of 20
Which of the following reasons for writing a formal business document would
lead
you to write a proposal?
A. To tell your manager a project is on budget and on schedule
B. To describe what tasks you completed during the week
C. To summarize what happened during a meeting
D. To convince your manager to use a new meeting organization tool
Answers
Answer:
D. To convince your manager to use a new meeting organization tool
Explanation:
In business, a proposal mostly needed for new projects that haven't been done by the company before. Usually, this will be made before a team about to approach a new markets, using new technologies to replace the old ones, or giving ideas for new programs that can improve company's profit.
A good proposal should consist of proper explanation about the project, what problems the project will address, resources that are needed to do the project, time lines, and the potential budget that might incurred from the project.
is coke and pepsi a duopoly
Answers
Answer:
Rivalry between Coca-Cola and PepsiCo is not a form of warfare: it is a competitive oligopoly. We might even say it’s a duopoly because the two firms control almost the entire market for soda-flavoured colas.
Explanation:
While Rebekah was shopping at Target, she noticed a Starbucks near the entrance, which prompted her to stop for coffee. This is an example of a
Answers
An example of store within a store is the setting that allowed Rebeekah to notice the Starbucks near the entrance at Target and prompted her to stop for coffee.
What is store within a store?This an agreement where the retailer rents a part of the retail space to be used by a different company to run another shop.
In coinclusion, the agreement makes Rebecca be able to see the Starbuck store while shopping at Target.
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why is 10 cents earned far more valuable than a dollar found. Critical thinking.
Answers
The government has the most influence over the production of goods and
services in which economic system?
A. Mixed economy
B. Command economy
C. Traditional economy
O D. Market economy
Answers
Answer: command economy
Explanation:
just took test
The government has the most influence over the production of goods and
services in the Command economy system. Hence, option B is appropriate.
What is the meaning of economy?An economy is a region where products and services are produced, distributed, traded, and consumed. It is generally understood to be a social domain that emphasizes the behaviors, discourses, and tangible manifestations connected to the creation, utilization, and management of finite resources.
Whether an entity is a country or a small town, an economy includes all of the activities connected to the production, consumption, and trade of products and services in that entity. Every economy is different. Each is shaped by the resources, laws, cultures, histories, and geographies that are unique to it.
The system that determines how limited resources are used to produce and consume goods and services is known as an economy. Resources include the likes of land and people.
Hence, option B is correct.
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which of the following statements is true of fraud? question 17 options: fraud is always a tort and not a crime. fraud is only applicable for the intentional misrepresentation of property. fraud is only applicable in cases involving financial transactions in business settings. fraud can be proved by giving evidence that one was harmed by another failing to disclose a material hidden fact. the victim of a fraud need not be injured in any way for it to be a tort as long as the victim can prove that the defendant committed the fraud.
Answers
Fraud is never a crime; it is always a tort. Only the deliberate misrepresenting of property falls under the definition of fraud. Fraud only occurs in certain situations.
What exactly does it mean to be deliberate?
Tips: The Latin word for deliberate, librare, means "to weigh." Deliberate implies "to weigh options before making a decision" in its verb form. A thoughtful individual weighs the repercussions before acting, and a deliberate action is one that has been thought through in advance. Deliberately means to carefully consider something or to speak about it; it also refers to the cautious decision-making process' slow and controlled speed. If you make a purposeful choice, you are doing it with much awareness and consideration.
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What has the greatest potential to demotivate you and lead you to unproductive activities?
Answers
Answer:
David is a HR generalist
Explanation:
Where do you report a stolen credit card to efta standards or pci standards
Answers
A merchant's PCI DSS compliance can be confirmed using the PCI Report on Compliance. The PCI DSS's standards and procedures were created to increase the security of credit card-based transactions and safeguard cardholder data from fraud and other unauthorized uses of their personal data.
To protect cardholders' private information and boost the security of transactions involving credit, debit, and cash cards, the Payment credit card Industry Data Security Standard (PCI DSS) is a well-known set of rules. PCI Compliance is NOT a one-time project but an ongoing practise. Merchants (the Business Owner) are in charge of overseeing the finances of their company's activities.
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A graphical representation of how much a seller would be willing and able to bring to the market at various prices is known as the:
Answers
A graphical representation of how much a seller would be willing and able to bring to the market at various prices is known as the supply curve. The supply curve is one of the most important tools used by economists to study markets.
It is a visual representation of the relationship between the price of a good or service and the quantity that producers are willing and able to supply at that price. The supply curve slopes upward from left to right, indicating that as the price of a good or service increases, producers are willing to supply more of it.
The reason for this is simple as the price of a good or service increases, producers are more likely to invest in the resources necessary to produce it, and they are also more likely to allocate their resources towards producing it.
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Describe how having a financial plan will help you earn and save money while moving forward with academic and career goals.
Answers
Answer:
having a financial plan means finding a job and preparing to use half of your income or money earned from that job and save the other half , doing this every time you are a looking to get paid will increase your savings and then you would be able to use that savings for furthering your education so you can get access to study jobs that will help you to understand the career you wish to pursue
What does it mean tamper proof?
Answers
Tamper proof means made so that you are able to see if anything has been changed, opened, removed or damaged.
Tamper-proof containers/locks/packaging product makers are encouraged to use tamper-proof packaging for their products.
Tamper evident packaging is packaging that alerts the consumer to foul play or damage to the product.
When tamper evident packaging is triggered by attempted removal or manipulation, it leaves evidence of these actions behind.
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Dean Smith did business as Deans's Appliance. For years, he bought appliances direct from General Electric. Deans's Appliance was sold to Smitty's Appliance, Inc. and Smitty hired Dean as manager, but General Electric did not know of the ownership change. Dean ordered a truckload of appliances from General Electric, as he had done many times. But when the invoice came due, Smitty refused to pay, claiming the order was a mistake, and it had not authorized Dean to make the order. General Electric sued both Smitty and Dean personally. What is the most likely outcome
Answers
Answer:
The court gave judgement against Dean because of fraud.
Explanation:
In the context, it is given that General Electric did business with Dean Appliances. Now Deans's Appliance was sold to Smitty's Appliance, Inc., to which Geneal Electric was unaware.
Smitty hired Dean as his manager and now Dean ordered appliances from General Electric as earlier he had done. But Smitty refused to pay when the invoice came due saying that Smitty did not authorized Dean to make those orders.
General Electric sues Smitty and Dean personally. The most likely outcome of the lawsuit is that the court punishes Dean for breaching and doing fraud with both Smitty and General Electric. Dean is found guilty.
: Blue Spruce Company expects to produce 984,000 units of Product XX in 2022. Monthly production is expected to range from 65,600 to 98,400 units. Budgeted variable manufacturing costs per unit are direct materials $6, direct labor $7, and overhead $ Budgeted fixed manufacturing costs per unit for depreciation are $2 and for supervision are $1. Prepare a flexible manufacturing budget for the relevant range value using 16,400 unit increments. (List variable costs before fixed cost Supervision Variable Costs Total Fixed Costs Depreciation Direct Materials Finished Units ✓ Direct Labor Overhead Activity Level Total Variable costs Fixed Costs Total Costs Vallavic CUSTS LA BLUE SPRUCE COMPANY Monthly Flexible Manufacturing Budget For the Year 2022 65600 393600. 00 459200. 00 000. 00 tA 82000 492,000. 00 57400. 00 tA 98400 590,400. 00 6,88,800. 00 7. 7. 0
Answers
The answer to the question is to prepare a flexible manufacturing budget for the relevant range value using 16,400 unit increments.
1. Start by determining the number of units within the relevant range. In this case, the relevant range is between 65,600 and 98,400 units.
2. Calculate the number of increments within this range. Since each increment is 16,400 units, divide the difference between the upper and lower limits of the range by 16,400.
3. Next, calculate the variable manufacturing costs per unit. This includes direct materials, direct labor, and overhead. For each unit, the direct materials cost is $6, direct labor cost is $7, and overhead cost is __ (the value is missing in the question).
4. Multiply the variable costs per unit by the number of units in each increment to get the total variable costs for each increment.
5. Determine the fixed manufacturing costs per unit. For depreciation, the cost is $2 per unit, and for supervision, it is $1 per unit.
6. Multiply the fixed costs per unit by the number of units in each increment to get the total fixed costs for each increment.
7. Finally, add the total variable costs and total fixed costs for each increment to get the total costs for each increment. This will give you the flexible manufacturing budget for the relevant range value using 16,400 unit increments.
Note: The missing value for overhead cost needs to be provided in order to accurately calculate the variable costs per unit and the total costs for each increment.
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A home improvement store has an assembled kids playset on display. There
are no signs waming parents not to let their kids play on it. When a child
climbs on the playset, it collapses and the child breaks her wrist. The playset
was not assembled properly for use because it was only for display. Is the
home improvement store negligent?
A. Yes. The store has a duty of care to provide a safe environment
and not assembling the playset correctly or putting up warning
signs is a breach of duty. The breach caused the playset to
collapse and resulted in harm to the child.
O B. Yes. Home improvement stores are held to a higher standard of
care than other stores because they sell some dangerous items.
Even though a reasonable person wouldn't climb the playset, the
store is still negligent.
O C. No. Home improvement stores do not have a duty to ensure the
safety of their customers because they sell some dangerous
items. Without duty to the customer, the store cannot be negligent.
OD. No. The store is not in violation of a breach of duty because
customers should know never to climb on or use anything on
display in a store. Without breach of duty, the store is not
negligent
Answers
Answer:
a. yes. the store has a duty of care to provide a safe environment and not assembling the playset correctly or putting up a sign is a breach of duty. and it resulted in harm.
Explanation:
a p e x
What does it cost to be a spectator at the masters.
Answers
The cost to be a spectator at the Masters golf tournament can vary depending on several factors. Firstly, the type of ticket you choose can influence the cost.
Daily practice round tickets, which allow you to watch the players practice from Monday to Wednesday, are generally more affordable, ranging from $75 to $100. Daily tournament round tickets for Thursday to Sunday, on the other hand, can be significantly more expensive, often priced at around $115 to $400, if purchased through the official lottery system. However, if you are unable to secure tickets through the lottery, you may need to purchase them through a third-party reseller, which can lead to a significant increase in price. These tickets can range from $300 to over $1,000 depending on the day and demand. Additionally, you should consider travel and accommodation expenses, as these will also impact the overall cost of attending the Masters. Lodging in Augusta during the tournament can be pricey, so booking early or staying further away from the course may help reduce costs. In summary, the cost of being a spectator at the Masters varies depending on the type of ticket, method of purchase, and additional travel and accommodation expenses. It is essential to budget and plan accordingly to ensure an enjoyable experience at this prestigious golf event.
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In general, an inverse relationship exists between:
a
b
human capital and income
education and unemployment
supply and price
education and earnings
d
Answers
Answer:
Explanation:
B
In general, it can be said that there exists an inverse relationship between the factors like education and unemployment in a society. Therefore, the option B holds true.
What is the significance of education and unemployment?The rate of education can be referred to as a proportion in which the total population of any given region gets educated. Unemployment rate refers to as the total population in any given region who do not have any employment or earning.
When the rate of education increases, the rate of unemployment decreases and vice versa. Thus, it can easily be concluded that there is an existence of inverse relationship between the rates of education and unemployment.
Therefore, the option B holds true and states regarding the inverse relationship between education and employment.
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What are the two factors used to calculate productivity?
A. Goods produced and number of customers
B. Resources invested and goods lost
C. Goods produced and employees hired
D. Goods produced and resources invested
Answers
Goods produced and resources invested re the two factors used to calculate productivity.
How productivity is measured?Productivity is measured from different factors in the organization like the profit generate from the sales, number of customer increases, the amount of money invested in the company, the goods that are consumed of sell within span of time and others.
Thus, option D is correct.
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Answer:
Goods produced and resources invested
Explanation:
Do many companies like it when you look like a fool?
A. No. All companies just want to help us.
B. Definitely! The job of many companies is to make money, not to do what is right for you... If you look like a fool, they make more money.
C. No. The government protects you against companies when they try to make you look like a fool.
D. Yes. All companies try to make you look like a fool.
Answers
Answer:
A
Explanation:
I dunno what to say lol-
No. The government protects you against companies when they try to make you look like a fool. Therefore option C is correct.
What is A Company?A company is a legal body created by a group of people to conduct and manage a business enterprise, whether it be commercial or industrial. Depending on the corporate legislation of its jurisdiction, a business may be set up in a variety of ways for tax and financial liability purposes.
When a corporation registers with the government and under the provisions of the companies act, it can begin conducting business. A memorandum of association, board of directors, share prices, shareholders, name, office, phone number, address, and other legal documents are required as part of the protracted registration process for a corporation.
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External analysis and internal analysis combined constitute what has come to be called?
Answers
External analysis and internal analysis combined constitute what has come to be called the SWOT analysis.
What is SWOT analysis?
Using a SWOT analysis, a person or organization can determine their strengths, weaknesses, opportunities, and threats in relation to project planning or competitive business environments. Situational analysis or situational evaluation are other names for it. The four pillars of a SWOT analysis are strengths, weaknesses, opportunities, and threats for your business. A SWOT analysis' main goal is to assist enterprises in fully understanding all the variables that go into choosing a course of action. Utilize your opportunities and strengths to advance. Use your strengths to confront threats and repel them. So that you may take advantage of chances, and strengthen your deficiencies. Because the threats are tailored to your weaknesses, withdraw (in Dutch).
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Which of the following is NOT a reason why people invest in the stock market?
A. Investing in the stock market usually offers a higher return than the interest earned on a savings account.
B. Investing is a guaranteed way to make money.
C. Investing in companies through the stock market offers a chance to share in the profits of those companies.
D. None of the above
Answers
Answer: B investing is a guarantee to make money
Explanation: I took the assessment
alex measured the length of an item to be 3.9 cm. the actual length is 3.5 cm what is alex percent error ?
Answers
Answer:
11.42 %
Explanation:
The formula for calculating percentage error
percentage error = observed value - actual value x 100
actual value
Percentage error = 3.9- 3.5 x 100
3.5
Percentage error = 0.4 x 100
3.5
Percentage error =0.1142 x 100
Percentage error = 11.42 %
Which document should a job seeker send with a résumé to a potential employer?
Answers
Answer:
c). cover letter
Explanation:
A cover letter is a formal letter or document that a job seeker sends to a potential employer together with a resume. The letter details the positions that the vacant applicant seeks to fill. The cover letter or job application letter accords the applicant the opportunity to market themselves to the employer.
In the cover letter, a job seeker states why they are the best candidate for the position. Applicants use the cover letter to convince the employer to hire them.
Answer:
cover letter
Explanation:
An individual working part-time has an annual income of $25,000. If this individual has an ira, what is the maximum deductible ira contribution allowable? no deduction allowed
Answers
The maximum deductible IRA contribution allowable is $25000.
What does "contribution" to an IRA mean?You can save money for retirement through an individual retirement arrangement (IRA), which offers tax advantages. Traditional and Roth IRAs are just two of the numerous types of IRAs available. An IRA can be opened with a bank, insurance provider, or other type of financial organization.
Is the IRA deduction limited to an income limit?If your modified AGI is $109,000 or less for 2022 ($116,000 for 2023), you can take a full deduction. For 2021, incomes between $109,000 and $129,000 ($116,000 and $136,000 for 2023) are eligible for a partial deduction. For 2022 and 2023, a deduction is not allowed for incomes over $129,000 ($136,000).
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which of the following refers to the negative impact of political decisions or events on a multinational’s profitability? a. Economic riskb. Local government riskc. Political riskd. Control risk
Answers
The correct option is C. The term that refers to the negative impact of political decisions or events on a multinational's profitability is political risk.
Economic risk refers to the impact of economic conditions on a company's profitability, local government risk refers to the risks associated with dealing with the local government, and control risk refers to the risk of internal control failures that could lead to financial misstatements. The term that refers to the negative impact of political decisions or events on a multinational's profitability is c. Political risk. Economic risk refers to the impact of economic conditions on a company's profitability, local government risk refers to the risks associated with dealing with the local government, and control risk refers to the risk of internal control failures that could lead to financial misstatements.
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pepsi and coca cola brand war
Answers
Answer:
Pepsi its just better
Explanation:
Shareholders expect a certain amount of return on their investment in an organization. How do organizations use capital finance strategies to ensure that return is sufficient? What economic conditions most affect shareholder’s perception of value? How and why?
Answers
Maximizing shareholder value: Shareholder value is the financial worth owners of a business receive for owning shares in the company. An increase in shareholder value is created when a company earns a return on invested capital (ROIC) that is greater than its weighted average cost of capital (WACC). To maximize shareholder value, organizations use strategies such as revenue growth, increasing operating margin, and increasing capital efficiency.
Making strategic decisions: Organizations make strategic decisions that maximize expected value, even at the expense of lowering near-term earnings. Companies that manage earnings are almost bound to fail in creating shareholder value. To deliver superior long-term returns, management must either repeatedly exceed market expectations for its current businesses or develop new value-creating opportunities
Finance at the lowest sustainable after-tax cost: Organizations use capital finance strategies to finance at the lowest sustainable after-tax cost. This helps them to create value by reducing the cost of capital and increasing the return on investment
The economic conditions that most affect shareholder's perception of value are:
Market conditions: The market conditions, such as the state of the economy, interest rates, and inflation, can affect the shareholder's perception of value. For example, if the economy is in a recession, shareholders may be less likely to invest in a company, which can affect the company's value
Industry conditions: The industry conditions, such as competition, technological changes, and regulatory changes, can affect the shareholder's perception of value. For example, if a new competitor enters the market, shareholders may be less likely to invest in a company, which can affect the company's value
Company-specific conditions: The company-specific conditions, such as financial performance, management quality, and corporate governance, can affect the shareholder's perception of value. For example, if a company has a history of poor financial performance, shareholders may be less likely to invest in the company, which can affect the company's value
In summary, organizations use capital finance strategies to ensure that the return on investment is sufficient for shareholders. The economic conditions that most affect shareholder's perception of value are market conditions, industry conditions, and company-specific conditions.
Which condition is a result of open competition in a free market system?
A. Poor customer service
B. Government regulation
C. Higher prices
D. Higher quality goods
Answers
A result of open competition in a free market system is higher quality goods (option D).
What is the result of open competition?
Competition is when there are many producers operating in a particular industry. Competition is high in purely competitive markets and low in a monopoly. This is because in a pure competition, there are many producers while there is only one producer in a monopoly.
Due to the high level of competition in an industry, prices would be more likely to be low. This is because producers would want to attract more consumers by fairly pricing their goods. Also, producers would want to offer good customer service in order to retain consumers as there are many competing producers in the market. High quality goods are also a way to attract an retain customers.
A free market system is a market system where prices are set by the forces of demand and supply. There is no government regulation in this type of market.
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You own a store in Simpsons Square Mall. Items in the compactor should weigh no more than
10 pounds
20 pounds
40 pounds
50 pounds
60 pounds
Answers
Explanation: From a similar question like this, I believe the answer is 40
How are volatility and risk related in an investment?
A.
a volatile investment is less risky
B.
a volatile investment is more risky
C.
volatility and risk are not related
Answers
The terms volatility and risk are related in an investment because a volatile investment is more risky. The Option B is correct.
What is a volatile investment?Basically, the term volatility describes when a market or security experiences periods of unpredictable and sometimes sharp, price movements. Most People often think of volatility only when prices fall, however volatility can also refer to sudden price rises too.
Most of the Increased market volatility are caused by economic or policy factors including changes in other markets, interest rate hikes, and the Fed's current monetary policy. A political instability can also lead to market volatility.
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your company has net sales revenue of $38 million during the year. at the beginning of the year, fixed assets are $10 million. at the end of the year, fixed assets are $12 million. what is the fixed asset turnover ratio?
Answers
The fixed asset turnover ratio, given the net sales revenue, and the fixed assets at the beginning and end of the year, is 3.45
How to find the fixed asset turnover ratio?The fixed asset turnover ratio can be found by the formula:
= Net sales revenue / Average fixed assets
The average fixed assets are:
= (Beginning fixed assets + Ending fixed assets ) / 2
= ( 10 + 12 ) / 2
= 22 / 2
= $ 11 million
The fixed asset turnover ratio is:
= 38 million / 11 million
= 3.45
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If your company has net sales revenue of $38 million during the year. at the beginning of the year, fixed assets are $10 million. at the end of the year, fixed assets are $12 million. The fixed asset turnover ratio is 3.45.
How to find the fixed asset turnover ratio?Using this formula to determine the fixed asset turnover ratio
Fixed asset turnover ratio = Net sales revenue / ( Beginning fixed assets + Ending fixed assets)/2
Let plug in the formula
Fixed asset turnover ratio = $38 million / ( $10 million + $12 million) /2
Fixed asset turnover ratio = $38 million / $22 million /2
Fixed asset turnover ratio = $38 million / $11 million
Fixed asset turnover ratio = 3.45
Therefore the fixed asset turnover ratio is 3.45.
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