Business, 12.02.2020 21:22 haileymaree
Suppose that the risk-free interest rate is 10% per annum with continuous compounding and that the dividend yield on a stock index is 4% per annum. The index is standing at 400, and the futures price for a contract deliverable in four months is 405. What arbitrage opportunities does this create?
please answer in your own words and step by step e. g. 1) short stock 2) invest $400 at e^(r-q)*T etc.
Answers: 2
Business, 21.06.2019 23:00
Employees of dti, inc. worked 1,600 direct labor hours in january and 1,000 direct labor hours in february. dti expects to use 18,000 direct labor hours during the year, and expects to incur $22,500 of worker’s compensation insurance cost for the year. the cash payment for this cost will be paid in april. how much insurance premium should be allocated to products made in january and february?
Answers: 1
Business, 22.06.2019 03:00
In the supply-and-demand schedule shown above, at the lowest price of $50, producers supply music players and consumers demand music players.
Answers: 2
Business, 22.06.2019 04:00
Don’t give me to many notifications because it will cause you to lose alot of points
Answers: 1
Business, 22.06.2019 08:20
Suppose that jim plans to borrow money for an education at texas a& m university. jim will need to borrow $25,000 at the end of each year for the next five years (total=$125,000). jim wishes his parents could pay for his education but they can’t. at least, he qualifies for government loans with a reduced interest rate while he is in school. he has a special arrangement with aggiebank to lend him the money at a subsidized rate of 1% over five years without having to make a payment until the end of the fifth year. however, at the end of the fifth year, jim agrees to pay off the loan by borrowing from longhorn bank. longhorn bank will lend him the money he needs at an annual interest rate of 6%. jim agrees to pay back the longhorn bank with 20 annual payments and the payments will be uniform (equal annual payments including principal and interest). (i) calculate how much money jim has to borrow at the end of 5 years to pay off the loan with aggiebank. a. $121,336 b. $127,525 c. $125,000 d. $102,020 e. none of the above
Answers: 2
Suppose that the risk-free interest rate is 10% per annum with continuous compounding and that the d...
History, 09.01.2020 09:31
Mathematics, 09.01.2020 09:31
Mathematics, 09.01.2020 09:31
Mathematics, 09.01.2020 09:31
Mathematics, 09.01.2020 09:31
Chemistry, 09.01.2020 09:31
English, 09.01.2020 09:31
History, 09.01.2020 09:31
Mathematics, 09.01.2020 09:31
Mathematics, 09.01.2020 09:31
Computers and Technology, 09.01.2020 09:31