The multiplier for a futures contract on a stock market index is $135. The maturity of the contract is 1 year, the current level of the index is 1,970, and the risk-free interest rate is 0.6% per month. The dividend yield on the index is 0.3% per month. Suppose that after 1 month, the stock index is at 1,990.
a. Find the cash flow from the mark-to-market proceeds on the contract. Assume that the parity condition always holds exactly. (Do not round intermediate calculations. Round your answer to 2 decimal places.)
b. Find the holding-period return if the initial margin on the contract is $6,700.
Answers: 2
Business, 22.06.2019 15:00
Which of the following is least likely to a team solve problems together
Answers: 1
Business, 22.06.2019 19:00
The demand curve determines equilibrium price in a market. is a graphical representation of the relationship between price and quantity demanded. depicts the relationship between production costs and output. is a graphical representation of the relationship between price and quantity supplied.
Answers: 1
Business, 22.06.2019 19:50
Right medical introduced a new implant that carries a five-year warranty against manufacturer’s defects. based on industry experience with similar product introductions, warranty costs are expected to approximate 2% of sales. sales were $8 million and actual warranty expenditures were $42,750 for the first year of selling the product. what amount (if any) should right report as a liability at the end of the year?
Answers: 2
Business, 22.06.2019 21:20
In a market economy, supply and demand are important because theya. (i) play a critical role in the allocation of the economy's scarce resources.b. (ii) determine how much of each good gets produced.c. (iii) can be used to predict the impact on the economy of various events and policies.d. all of (i), (ii), and (iii) are correct.
Answers: 3
The multiplier for a futures contract on a stock market index is $135. The maturity of the contract...
Mathematics, 11.02.2021 08:20
English, 11.02.2021 08:20
Mathematics, 11.02.2021 08:20
World Languages, 11.02.2021 08:20
Mathematics, 11.02.2021 08:20
Mathematics, 11.02.2021 08:20
Mathematics, 11.02.2021 08:20
Biology, 11.02.2021 08:20
English, 11.02.2021 08:20
History, 11.02.2021 08:20
Computers and Technology, 11.02.2021 08:20