Business, 22.09.2020 16:01, arcanos616p53hw1
The spot price of gold is currently $1,782.90 and the risk free rate is at 8%. The gold will provide income over the next year of $30 every 3 months, but it will cost $20 per quarter to store. The storage costs will be incurred at the end of each quarter and the income payments will be received at the end of each 3 month period. Currently, a forward contract with a 9 month maturity is priced at $1,976.80. Assume regular compounding. a. Is the market at, above or below full carry? Is this an example of the basis or the spread? b. Discuss the process of taking advantage of this arbitrage opportunity and the resulting gain or loss. c. If this forward were correctly priced (using the “model” forward price) and there were no storage costs or income payments, what would be the implied repo rate?
Answers: 3
Business, 22.06.2019 11:10, addsd
Sam and diane are completing their federal income taxes for the year and have identified the amounts listed here. how much can they rightfully deduct? • agi: $80,000 • medical and dental expenses: $9,000 • state income taxes: $3,500 • mortgage interest: $9,500 • charitable contributions: $1,000.
Answers: 1
Business, 22.06.2019 15:10, hsbhxsb
Popeye produces 20 cans of spinach in 8 hours. wimpy produces 15 hamburgers in 10 hours. if each hamburger trades for 1.5 cans of spinach, then: a. wimpy’s production and productivity are greater than popeye’s. b. popeye’s production is greater than wimpy’s, but his productivity is less. c. wimpy’s production is greater than popeye’s, but his productivity is less. d. popeye’s production and productivity are greater than wimpy’s.
Answers: 3
Business, 22.06.2019 16:30, tadams9922
Penelope summers received certain income benefits in 2018. she received $1,400 of state unemployment insurance benefits, $2,000 from a federal unemployment trust fund and $3,700 workers’ compensation received for an occupational injury. what amount of the compensation must penelope include in her income
Answers: 1
Business, 22.06.2019 17:40, payloo
To appeal to a new target market, the maker of hill's coffee has changed the product's package design, reformulated the coffee, begun advertising price discounts in women's magazines, and started distributing the product through gourmet coffee shops. what has been changed? a. the product's perceptual value. b. the product's 4ps. c. the method used in its target marketing. d. the ownership of the product line. e. the product's utility.
Answers: 3
The spot price of gold is currently $1,782.90 and the risk free rate is at 8%. The gold will provide...
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