Suppose that the price of corn is risky, with a beta of 0. 3. The monthly storage cost is $0. 03 per bushel, and the current spot price is $2. 97, with an expected spot price in three months of $3. 13. If the expected rate of return on the market is 1. 6% per month, with a risk-free rate of 0. 9% per month, what is the expected futures cost
Answers
If the expected rate of return on the market is 1. 6% per month, with a risk-free rate of 0. 9% per month, then the expected futures cost is $3.074
To find the expected futures cost, we can use the formula:
F = S * e^((r - c) * t)
where:
F = expected futures cost
S = current spot price
r = expected rate of return on the market
c = storage cost
t = time to delivery
First, we need to find the expected rate of return on the corn futures contract. We can use the CAPM equation:
r_f = r_f + β*(r_m - r_f)
where:
r_f = risk-free rate
β = beta
r_m = expected rate of return on the market
Plugging in the values, we get:
r_futures = 0.9% + 0.3*(1.6% - 0.9%) = 1.14%
Next, we can calculate the time to delivery in months:
t = 3 months
Now we can plug in all the values into the futures cost formula:
F = $2.97 * e^((0.0114 - 0.03) * 3) = $3.074
Therefore, the expected futures cost is $3.074 per bushel.
To know more about future cost , refer here :
https://brainly.com/question/29486688#
#SPJ11
Related Questions
The monetary value of all goods and services produced in a country in a year is called Question 2 options: Currency Supply and Demand Industry Product Gross Domestic Product.
Answers
The monetary value of all goods and services produced in a country in a year is called Gross Domestic Product (GDP).
Gross Domestic Product (GDP) is a widely used economic indicator that measures the total value of all final goods and services produced within a country's borders during a specific time period, usually a year. It serves as a measure of the country's economic output or production.
GDP encompasses various sectors, including agriculture, manufacturing, services, and construction, and takes into account both private and public consumption, investments, and government spending. It provides a comprehensive assessment of a country's economic performance and is used to compare the relative economic strengths of different nations.
The calculation of GDP involves adding up the monetary value of all final goods and services produced within the country's borders, regardless of whether they are consumed domestically or exported. It excludes intermediate goods and focuses on the final products that reach consumers.
GDP can be measured using three different approaches: the production approach, which adds up the value of goods and services produced; the expenditure approach, which sums up the spending on goods and services; and the income approach, which calculates the total income generated from production.
Learn more about Gross Domestic Product here:
https://brainly.com/question/32169010
#SPJ11
The economic profits of firms in long run competitive equilibrium are: a) positive b) negative c) zero d) zero if it is a constant cost industry, positive ...
Answers
The economic profits of firms in long-run competitive equilibrium are zero. The correct option is C.
In a long-run competitive equilibrium, firms adjust their production levels in response to market conditions. In a perfectly competitive market, firms will enter or exit the market until economic profits are driven to zero.
This occurs through the following process:1. If firms are earning positive economic profits, this attracts new firms to enter the market.
2. As new firms enter, the increased competition leads to a decline in the market price.
3. As the price declines, economic profits decrease until they eventually reach zero.
4. When economic profits are zero, there is no incentive for additional firms to enter or for existing firms to exit the market.
5. In this equilibrium state, firms earn just enough revenue to cover all their costs, including a normal profit (which is the opportunity cost of the entrepreneur's time and resources).
In summary, in a long-run competitive, economic profits are zero because firms adjust their production levels in response to market conditions, and the forces of entry and exit eventually lead to an equilibrium where firms earn zero economic profits.
To know more about equilibrium, refer here:
https://brainly.com/question/3234586#
#SPJ11
Complete question:
The economic profits of firms in long run competitive equilibrium are:
a) positive
b) negative
c) zero
d) zero if it is a constant cost industry, positive otherwise
Explain the technique of making bamboo based handicrafts with an example.
Answers
Answer:
Bamboo can be processed into thin strips or sheet materials for bamboo plaiting , commonly known as bamboo strips. The processing procedures of bamboo strips include selecting materials , sawing bamboo, pruning, scraping, dividing, splitting, setting the width, thinning and chamfering.
Explanation:
Example: •Bamboo furniture
•Bamboo toys
•Bamboo wind chimes
•Bamboo lamps and lanterns
•Bamboo placements and coasters
The technique bamboos are processed into thin strips or sheet materials for bamboo plaiting, known as bamboo strips and the processing procedures of bamboo strips include selecting materials, sawing bamboo, pruning, scraping, dividing, splitting, setting the width, thinning and chamfering. For example, bamboo furniture.
What is the process of making bamboo handicrafts?The process of making bamboo handicrafts is given below. First, the bamboo is completely dried before use. The bamboo is segregated in the beginning according to the products that are going to be made. They are cut to the required sizes with the help of a bamboo sawing machine. The cut bamboo sticks are arranged for the products that have to be made.
The products are always made depending on the client’s orders. For example, to make a stool, bamboo is cut respectively into four sets to make the legs and eight sets of smaller lengths to connect the legs horizontally to get a firm hold of the four legs of the stool. A stool is something similar to that a chair but doesn’t hold a backrest.
A stool is a seat for a single person without any backrest.
Learn more about bamboo, here:
https://brainly.com/question/22167412
#SPJ2
both dual enrollment and AP courses offer the following possibilities except that
Answers
Crane Company purchased a depreciable asset for $563000. The estimated salvage value is $26000, and the estimated useful life is 10000 hours. Carson used the asset for 1100 hours in the current year. The activity method will be used for depreciation. What is the depreciation expense on this asset in the current year
Answers
The depreciation expense on this asset for the current year is $59,070.
To calculate the depreciation expense using the activity method, we need to determine the depreciation rate per hour first.
Total depreciable cost = Cost of asset - Estimated salvage value
Total depreciable cost = $563,000 - $26,000 = $537,000
Depreciation rate per hour = Total depreciable cost / Estimated total hours of use
Depreciation rate per hour = $537,000 / 10,000 hours = $53.70 per hour
Now, we can calculate the depreciation expense for the current year:
Depreciation expense = Depreciation rate per hour x Actual hours of use
Depreciation expense = $53.70 per hour x 1,100 hours = $59,070
Therefore, the depreciation expense on this asset for the current year is $59,070.
Learn more about “ depreciation expense “ visit here;
https://brainly.com/question/15085226
#SPJ4
how many black millionaires are there in the united states?
Answers
Answer:
1.5 million black American millionaires.
Explanation:
___ 10. Audit procedures include direct evidence such as documentation and client interviews, but not any theoretical or computational analysis. ___ 11. Comparison of the client's balance sheet or income statement with industry averages isn't a basis for identifying audit risks. ___ 12. Evidence of fair values may be obtained in a confidential questionnaire to employees. ___ 13. If a company leases its premises from the CEO's wife's uncle, this does not need to be disclosed. ___ 14. Working papers derived from client information belong to the Board of Directors.
Answers
11. Comparison of the client's balance sheet or income statement with industry averages isn't a basis for identifying audit risks.
This statement is false. Comparison of the client's financial statements with industry averages can be a basis for identifying audit risks. This information can assist in assessing the client's risk of misstatement and determining areas that require further audit scrutiny.
10. Audit procedures include direct evidence such as documentation and client interviews, but not any theoretical or computational analysis.
This statement is false. Audit procedures can include both direct evidence, such as documentation and client interviews, as well as theoretical or computational analysis.
12. Evidence of fair values may be obtained in a confidential questionnaire to employees.
This statement is true. Evidence of fair values can be obtained through various methods, and one approach is the use of confidential questionnaires to employees.
13. If a company leases its premises from the CEO's wife's uncle, this does not need to be disclosed.
This statement is false. Transactions with related parties, such as leasing premises from the CEO's wife's uncle, typically need to be disclosed in the company's financial statements.
14. Working papers derived from client information belong to the Board of Directors.
This statement is false. Working papers are the property of the auditing firm, not the Board of Directors. Working papers include the documentation and records maintained by auditors during the course of an audit.
To learn more about income click here brainly.com/question/2386757
#SPJ11
Ammunition Handlers conduct joint inventory with the unit using _________ to ensure the unit is getting the correct quantities and types of ammunition.
Answers
The DA Form 3151-R is used to ensure the unit is getting the correct quantities and types of ammunition.
Who are the Ammunition Handlers?These are people that conduct a periodic inventory of ammunition, ammunition components and ammunition related material.
They also perform a principal duties of receipt, storage, and issue of ammunition etc.
Read more about Ammunition Handlers
brainly.com/question/11457082
Which of the following nonverbal signals can you use to indicate interest and enthusiasm?
A. Fidgeting
B. Crossing your arms
C. Making eye contact
D. Sitting at a distance
Answers
C. Making eye contact
Have a great day!
help me please please
Answers
Answer:
#2 is false.
Explanation:
Every person has their own taste in clothes or have their own style,Not everyone of the same race has a certain style they ALL have to dress
A company's flexible budget for 19,000 units of production showed sales, $81,700; variable costs, $30,400; and fixed
costs, $12,000. The variable costs expected if the company produces and sells 12,000 units is:
Multiple Choice
Answers
After solving the given problem, the variable costs expected if the company produces and sells 12,000 units is $19,200.
Variable costs are expenses that change in proportion to the activity of a company. This means that as the level of production or sales increases, variable costs will also increase, and as production or sales decrease, variable costs will decrease as well.
The variable costs can be influenced by the company's decision to increase or decrease production or sales activities. Examples of variable costs may include costs of raw materials, direct labor, and sales commissions.
Learn more about variable costs here:
https://brainly.com/question/30758234
#SPJ1
14. (02.01 MC) A store advertises new TVs for $100 a month for six months instead of $600 in order to
Answers
Answer:let people come up with the money.
Explanation:You might not have yhe whole $600 but you might have the $100
how can government create more employment
Answers
Answer:
The government can create more employment by Reducing Interest Rates.
Answer:
Reducing Interest Rates.
Explanation:
Following is a list of various professional services. Identify each by its apparent characteristics as audit engagement, attestation engagement, or assurance engagement. Because audits are a subset of attestation engagements, which are a subset of assurance engagements, choose the most specific description. In other words, if you believe the engagement is an audit engagement, select only audit engagement rather than checking all three. Similarly, the choice of assurance engagement for an audit, while technically correct, would not be the best choice.
Answers
Real estate demand studies Assurance services
Ballot for award show Assurance services
Utility rates appplications Assurance services
Newspaper circulation audits Assurance services
Third party reimbursement maximisation Assurance services
Annual financial report to stockholders Audit services
Rental property operation review Assurance services
Examination of financial forecasts and
projections Attestation services
Customer satisfaction surveys Assurance services
Compliance with contractual requirements Attestation services
Benchmarking/ best practices Assurance services
Evaluation of investment management
policies Assurance services
Information systems security reviews Assurance services
Productivity statistics Assurance services
Internal audit strategic review Assurance services
Financial statement submitted to a
Bank loan officer Audit services
Audit Engagement: Professional services are classified under this heading since it is believed that they provide information to all parties involved via reports or statements.Engagement for Attestation: Professional Services were assigned under this heading as a forecasting exercise.Engagement in Assurance: Professional services that convey an opinion and are related to either financial or non-financial categories are classified under this heading.Read more about Audit Engagement:
https://brainly.com/question/15431983
#SPJ4
Which part of effective leadership deals with maintaining equity?
Answers
Answer:
the part where you have to lead
Explanation:
Breton Woods Standards were found to be inadequate mainly because
Answers
Answer:
A key reason for Bretton Woods' collapse was the inflationary monetary policy that was inappropriate for the key currency country of the system.
Explanation:
The US decision to suspend gold convertibility ended a key aspect of the Bretton Woods system. The remaining part of the System, the adjustable peg disappeared by March 1973.
for whom are a majority of people more likely to vote? group of answer choices laura, who says she can restore the health care system eddie, who says the next couple of years are going to be tough, but we can do it ronald, who says that cutting spending is the only way to restore the economy denise, who promises to raise taxes by only a small percentage to fund education
Answers
It is difficult to say for certain who the majority of people are more likely to vote for as each individual's opinion can differ.
However, based on the given answer choices, it is likely that people would be more likely to vote for Denise, who promises to raise taxes by only a small percentage to fund education.
This is because many people are in favor of increased funding for education, and Denise's promise to only raise taxes by a small percentage makes it more palatable.
When it comes to taxes, many people are hesitant to support any increase. However, when the funds raised through taxation are allocated to important causes such as education, people tend to be more open to the idea.
Learn more about voting:
https://brainly.com/question/21910013
#SPj4
HELP PLEASE
Companies create a division of labor among employees in order to:
O A. reduce the opportunity cost for hiring new employees.
O B. make it easier to shift employees between different jobs.
O C. allow each employee to perform one task at a high level.
O D. gain access to more human and physical capital.
Answers
Answer:
D
Explanation:
companies do this so everyone is more proficient with their bodies and their work
The epicurean society is holding its annual election for president. The three candidates are a, b, and
c. Twenty percent of the voters like upper c the most and upper a the least. Forty percent of the voters like upper a the most and upper c the least. Of the remaining 232 prefer upper b to upper c and upper c to upper a, and 696 prefer upper b to upper a and upper a to upper
c. Write out the preference schedule for this election.
Answers
Answer and Explanation:
Please find answer and explanation attached
You can buy life insurance for anyone. True or false
Answers
Answer:
False
Explanation:
Answer: False
Explanation:
How should you dress for a phone interview? (Site 1)
online content
Answers
Answer:
You should at least have a nice top on because only the camera will see that. If you are a girl you could just wear a dress, probably a black one because that is what I wore to my interview yesterday because there is no pattern or anything it's just a plain black one, but that was in person. if you're a guy you need to wear a suit and tie,but you could probably just wear shorts because they won't see the bottom half of you
Explanation:
I hope this helps out a little bit :-)
An interview is a formal process by which an employee is assessed for his/her performance by the employer.
For a phone interview, one should be dressed properly as the interviewer can see you through the camera.
For a girl, you should be dressed nicely and no revealing or extra shiny clothes should be wore.
In the case of a man, one should be properly dressed in suits or formal shirts.
Try to wear dark black or blue coloured clothes and sit in a properly lighted area.
To learn more about phone interviews follow the link:
https://brainly.com/question/3701296
Identify the problem by analyzing the given scenario. An IT software company is losing market share because it fails to launch new products in a timely manner. Decisions are centralized at the top, and employees have little or no voice. One way to solve this problem is to use teams to eliminate ____ in the company.
Answers
Explanation:
to eliminate their best efforts in the company
Answer:
"bureaucratic barriers"
Explanation:
i got it right on plato
A reduction in the number of kanbans (given a constant container size) requires: Group of answer choices an increase in lead time while keeping safety stock constant an increase in safety stock while keeping lead time constant a reduction in safety stock and/or lead time an increase in safety stock and/or lead time
Answers
Answer: a reduction in safety stock and/or lead time
Explanation:
Kanban is a visual system that is used for the management of work as the work moves through a process. It should be noted that it is a concept that tells one what to produce, quantity to produce and when to produce it.
A reduction in the number of kanbans (given a constant container size) requires a reduction in safety stock and/or lead time.
A U.S. dollar-denominated bond sold in the United States by a Japanese-firm is called a(n): A. Yankee bond. B. Homeland bond. C. International bond.D. Euroyen bond
E. Foreign bond.
Answers
The correct answer to the question is A. Yankee bond. A Yankee bond is a U.S. dollar-denominated bond sold in the United States by a foreign entity, usually a non-U.S. corporation or government. It is also known as a foreign bond or a dollar bond.
The term "Yankee bond" originated in the 1920s when U.S. companies began issuing bonds in the European market. In response, foreign companies started issuing bonds in the U.S. market, and the term "Yankee bond" was coined to refer to these bonds.
Yankee bonds offer several benefits to foreign issuers. They allow foreign entities to raise capital in the U.S. market and to take advantage of the deep and liquid U.S. bond market. Yankee bonds also provide issuers with access to a diverse group of U.S. investors, which can help to diversify their funding sources.
In addition, Yankee bonds can provide a hedge against currency risk, as the bond is denominated in U.S. dollars. This can be particularly attractive to foreign issuers who have revenues and expenses denominated in different currencies.
In summary, a U.S. dollar-denominated bond sold in the United States by a Japanese-firm is called a Yankee bond. Yankee bonds are a popular way for foreign entities to raise capital in the U.S. market and to diversify their funding sources.
To know more about Yankee bonds refer here :
https://brainly.com/question/27014415#
#SPJ11
Specialty Products Company has a high turnover rate among its employees, especially those
who are young parents. Solution to this problem
Answers
The company has to first investigate the reason why young parents are leaving the company. This is the first step towards resolving the issues of high turnover.
If it is because of the inability to care for their kids while at work, then the company can solve this problem by:
Turnover in human resources refers to the act of replacing one employee with a new employee. Termination, retirement, death, interagency transfers, and resignations are examples of separations between organizations and personnel.
Turnover in human resources refers to the act of replacing one employee with a new employee. Termination, retirement, death, interagency transfers, and resignations are examples of separations between organizations and personnel.
Learn more about high turnover:
https://brainly.com/question/2309682
#SPJ1
the statute of limitations for filing a claim alleging a criminal violation of the uniform securities act is:
Answers
The statute of limitations for filing a claim alleging a criminal violation of the uniform securities act varies by state and can range from 1 year to 6 years. However, in some cases, the statute of limitations may be tolled or extended depending on the circumstances of the case.
It is important to consult with an attorney to determine the specific statute of limitations in your state and any potential tolling or extension factors that may apply. The statute of limitations for filing a claim alleging a criminal violation of the Uniform Securities Act is typically 5 years.
However, it may vary depending on the specific state's implementation of the Act. Please consult your state's securities regulations for precise information. The statute of limitations for filing a claim alleging a criminal violation of the uniform securities act varies by state and can range from 1 year to 6 years. However, in some cases, the statute of limitations may be tolled or extended depending on the circumstances of the case.
To know more about uniform securities visit :
https://brainly.com/question/30459726
#SPJ11
Which decision-making style is also referred to as the ostrich style? The decision-making style of a (an) is also referred to as the ostrich style.
Answers
The Evader style of decision-making is also known as the ostrich style.
What is a decision-making style?Decision-making style refers to the way in which decisions are taken by a firm that are most favorable for the firm. There are various decision-making styles such as evader, followers, and so on.
The Evader style of decision making is one in which an individual or a professional avoids taking decisions hoping them to go away. It is therefore also called as ostrich style.
Therefore the correct option is Evader style.
Learn more about decision-making style here:
https://brainly.com/question/5341210
Answer:
Answer is Evader
Explanation:
its right trust
3. ______ are defined as goods or services that are required for health and safety.
Answers
Occupational Health and Safety are defined as goods or services that are required for health and safety. Information standards are guidelines governing the information that must be provided to consumers when they purchase specific goods.
What is the safety of goods?A safe product is one that delivers either no risk or a minimum tolerable level of risk, taking into account the product's typical or reasonably foreseeable use and the need to maintain a high level of consumer protection.
Occupational health and safety is a multidisciplinary discipline that deals with all elements of workplace health and safety, with a heavy emphasis on preventing workplace dangers.
Learn more about the safety of goods here:
https://brainly.com/question/28480753
#SPJ1
_______ refers to any information about a product or an organization that is communicated to the public through the media and is not paid for by the sponsor.
Answers
Advertorial refers to any information about a product or an organization that is communicated to the public through the media and is not paid for by the sponsor. Any number of people or organizations that support the goals and objectives of another person or organization can be referred to as sponsors.
For instance, sponsors might invest in private organizations, generate interest in publicly traded securities, underwrite the sale of mutual fund shares in initial public offerings, develop exchange-traded funds (ETFs), or provide venues for benefits. Additionally, sponsors may use their name and reputation to help a movement, platform, or brand gain popularity.
To learn more about sponsors, click here.
https://brainly.com/question/5001138
#SPJ4
Which statement about the Federal Reserve (the Fed) is true?
O Unless a person works there, the Fed has little impact on everyday life.
O The Fed determines the criteria banks must use to evaluate loan requests.
O The Fed sets monetary policy, which affects the interest rates banks offer.
O Because it is independent, the Fed reviews and approves the national budget.
Answers
A statement that is true on the Federal Reserve is that C. The Fed sets monetary policy, which affects the interest rates banks offer.
What does the Federal Reserve do ?The American central bank is known as the Federal Reserve System (FRS). It is conceivably the most potent financial organization in the entire globe and is sometimes referred to as "the Fed." It was established to give the nation a secure, adaptable, and stable financial and monetary system.
Its primary duties include controlling the money supply, establishing interest rates, and overseeing the financial system. In times of economic crisis, it also serves as a lender of last resort, as was shown during the financial crisis of 2008.
These powers of the Federal Reserve mean that it is the one which sets the monetary policy of the United States. This monetary policy will then affect the interest rates on loans, offered by banks.
Find out more on the federal reserve at https://brainly.com/question/1997750
#SPJ1