the spot price for home heating oil is $0.55 per gallon. the futures price for one year from now is $0.57. if the risk-free rate is 6 percent per year, what is the net convenience yield?
Answers
The result was 3.9%, indicating that holding the physical asset provides a benefit of 3.9% over holding the futures contract.
To calculate the net convenience yield, we need to use the formula:
Net Convenience Yield = (Futures Price - Spot Price) / Futures Price - (Risk-Free Rate x Time)
Here, the spot price is $0.55 per gallon, the futures price is $0.57 per gallon (one year from now), and the risk-free rate is 6 percent per year. We can assume that the time is one year.
Substituting these values into the formula, we get:
Net Convenience Yield = ($0.57 - $0.55) / $0.57 - (0.06 x 1)
Net Convenience Yield = $0.02 / $0.51
Net Convenience Yield = 0.039 or 3.9%
Therefore, the net convenience yield is 3.9%.
The net convenience yield is an important concept in the futures market. It represents the benefit that an investor or trader receives from holding the physical asset (in this case, home heating oil) rather than the futures contract. In this scenario, the spot price for home heating oil is $0.55 per gallon, the futures price is $0.57 per gallon (one year from now), and the risk-free rate is 6 percent per year. Using the formula, we can calculate that the net convenience yield is 3.9%. This means that investors or traders who hold the physical asset will receive a benefit of 3.9% over those who hold the futures contract.
In conclusion, the net convenience yield is an important factor to consider when trading futures contracts. It represents the benefit that an investor or trader receives from holding the physical asset rather than the futures contract. In this scenario, we calculated the net convenience yield for home heating oil based on the spot price, futures price, and risk-free rate. The result was 3.9%, indicating that holding the physical asset provides a benefit of 3.9% over holding the futures contract.
To know more about net convenience yield visit:
brainly.com/question/15683175
#SPJ11
Related Questions
OFFERING 20 POINTS Whitney's proposal to build 10,000 guns relied on what two important elements found in the modern manufacturing process? interchangeable parts and assembly lines economies of scale and interchangeable parts centralization and efficiencies of scale unions and unskilled labor
Answers
Answer:
interchangeable parts and assembly lines
Explanation:
For questions #1 - #4: Visit the PeachState Credit Union Website
https://www.peachstatefcu.org/ (Links to an external site.) Click on Accounts --> Checking
What is the name of the account for young adults?
Group of answer choices
eXtreme Checking
CU60 Checking
Basic Checking
Fresh Start Checking
Premium Checking
Answers
Answer:
I'm pretty sure that the answer is basic checking I'm not sure but you could try it if nobody else has an answer for you :)
when is interest expense more than interest paid? a. when bonds are sold at a yield b. when bonds are sold at a premium c. when bonds are sold at a discount d. when bonds are sold at a margin
Answers
When bonds are sold at a premium, the interest expense will be greater than the interest paid.The correct answer is b.
Interest expense is greater than interest paid when bonds are sold at a premium. A premium is a rate that is higher than the par value or face value of a bond. As a result, when bonds are sold at a premium, it means they are sold at a higher price than the face value.
The premium represents the excess that the purchaser pays above the face value. The market's demand for bonds is one of the main reasons why bonds are sold at a premium.The interest paid is the bond's coupon rate multiplied by the face value of the bond.
The coupon rate is set by the bond issuer and does not change during the bond's life. However, the interest expense is the interest paid plus or minus the amortization of any premium or discount. The amortization of the premium lowers the interest expense, whereas the amortization of the discount raises the interest expense.
In summary, when bonds are sold at a premium, the interest expense will be greater than the interest paid.
Learn more about interest expense here:
brainly.com/question/14185533
#SPJ11
disadvantages of creative thinking in a workplace
Answers
Answer:
This article will dive into what creative thinking is, types of creative thinking, and the benefits of thinking creatively in the workplace. As it happens, it is not the experience of failure that holds you back. There are six major obstacles to creative thinking that could be preventing you from learning how to improve your problem solving skills for business success. Creative thinking and creative thinkers are needed in those situations because it pushes out of that linear way of thinking. To think creatively, set aside any assumptions or biases you may have, and look at things in a completely new way. You don't have to be an artist for your work to have an artistic element. In homeostasis, there seems to be an irresistible unconscious pressure that brings you back to doing what you have always done. This requires the ability to examine things carefully to know what they mean. Thinking The following transcript is based on material in Skills for Success: The Personal Development Handbook, by Stella Cottrell. asked Feb 22, 2018 in Grade 12 by Admin Master (890k points) grade-12; ... discuss the disadvantages of creative thinking. Advantages Of Creative Thinking. Being rational means that we continually use our minds to explain the world to ourselves, so we can understand it better and feel more secure. Here are some of the types of creative thinking you might see in the workplace.
T/F : Leadership development can take place by using one's immediate superior as a positive or negative model of effective leadership.
Answers
For instance, observing their supervisor could help an individual recognize the kind of communication that is effective and necessary for different kinds of individuals and how to develop an ethical and professional attitude in a corporate culture. This can help them develop their leadership qualities and capabilities.
The statement "Leadership development can take place by using one's immediate superior as a positive or negative model of effective leadership" is TRUE.Using one's immediate superior as a positive or negative model of effective leadership is one way leadership development can take place. An individual can learn how to become a good leader by observing their immediate superior's behavior and habits at work. This can help them to identify which traits are effective in leading a team and which ones are not.For instance, observing their supervisor could help an individual recognize the kind of communication that is effective and necessary for different kinds of individuals and how to develop an ethical and professional attitude in a corporate culture. This can help them develop their leadership qualities and capabilities.
To know more about individuals visit:
https://brainly.com/question/32647607
#SPJ11
suppose the fed sells $ 300 billion in government securities, which results in a $1500 billion decrease in the money supply. in the long run, the decrease in the money supply will cause the price level in the economy to and real gdp to .
Answers
Inflation decreases and real GDP decreases
What is Real gross domestic product?Real gross domestic product (GDP) is a measure of an economy's output of all products and services over the course of a year, adjusted for inflation. Base-year prices are used to express real GDP. It is also referred to as GDP in constant dollars, GDP that has been inflation-adjusted, and GDP in constant prices. Real GDP, in its simplest form, measures a country's overall economic production while accounting for price changes.
Because it offers comparisons for both the amount and value of goods and services, real GDP makes analyzing GDP from year to year and from
various years more meaningful.
1 / .2 = 5
-300 * 5 = -1500
Shift the AD line to the left
To know more about Real gross domestic product, visit:
https://brainly.com/question/1383956
#SPJ1
a company charting its profits notices that the relationship between the number of units sold, x, and the profit, p, is linear. if 190 units sold results in $1140 profit and 240 units sold results in $3940 profit, write the profit function for this company.
Answers
Profit function: p(x) = 20x + 150, where x represents the number of units sold and p(x) represents the corresponding profit.
To find the profit function, we need to determine the relationship between the number of units sold (x) and the profit (p). Given that the relationship is linear, we can express it in the form of a linear equation: p(x) = mx + b, where m is the slope (representing the rate of change of profit with respect to units sold) and b is the y-intercept (representing the fixed profit when no units are sold). Using the given data, we can calculate the slope (m) as the change in profit divided by the change in units sold: m = (3940 - 1140) / (240 - 190) = 2800 / 50 = 56. Next, we substitute one set of values (x, p) from the given data into the equation to solve for the y-intercept (b). Let's use (190, 1140): 1140 = 56(190) + b 1140 = 10640 + b b = 1140 - 10640 b = -9500.
learn more about number here :
https://brainly.com/question/3589540
#SPJ11
Hammers, screwdrivers, drills, and saws are _____ a construction worker uses.
-tasks
-skills
-tools
-qualifications
Answers
Answer:
are a - tool - construction workers use
As e-commerce continues to develop, many retailers are likely to maintain some type of "brick-and-mortar" store or physical location primarily because.
Answers
Many retailers are likely to maintain some type of "brick-and-mortar" store or physical location primarily because consumers expect integrated shopping experiences that includes face to face options.
What does e-commerce mean?E-commerce, also known as electronic commerce or internet commerce, refers to the buying and selling of goods or services using the internet, and the transfer of money and data to execute these transactions.
The 4 types of e-commerce presence that we have include:
Web sites,Social mediae-mail,Offline media.Hence, many retailers are likely to maintain some type of "brick-and-mortar" store or physical location primarily because consumers expect integrated shopping experiences that includes face to face options.
Learn more about e-commerce here : https://brainly.com/question/2795424
What is it called when businesses are doing poorly and stock prices drop?
Answers
Answer:
When a stock price falls, that means the company must sell additional shares of stock to raise the same amount of proceeds
Explanation:
An organization where employees typically wear casual clothes and interact casually is most likely to have a(n) ________ organizational culture. Group of answer choices hierarchical formal rules-bound informal
Answers
An organization where employees typically wear casual clothes and interact casually is most likely to have an **informal** organizational culture.
In an informal culture, there is a more relaxed and flexible approach to work, and interactions are often less formal and hierarchical. Employees may have more autonomy and freedom in decision-making, and there is a greater emphasis on open communication and collaboration. The organization may have fewer strict rules and procedures, and there is often a focus on fostering a friendly and comfortable work environment. This type of culture promotes creativity, innovation, and a sense of camaraderie among employees.
Learn more about hierarchical here:
https://brainly.com/question/30782169
#SPJ11
Do you think large multinational corporations in general like Wal-Mart, Apple, McDonalds and Frito Lay are good or bad for the world? Is "globalization" another word for “Americanization”? Why or why not? (3 points) Explain using complete sentences.
Answers
Answer:
I think multinational corporations in like these are bad. Because even people on diets or trying to diet, and people buy it for them not knowing its hard for them to say no.
Explanation:
Identify two simplifying assumptions associated with discounted cash flow methods of making capital budgeting decisions.
Answers
The idea that all cash flows happen at the end of a period is one. Another is the prompt reinvestment of all cash inflows at a rate of return equal to the discount rate.
What is capital budgeting?
A business uses capital budgeting to decide which planned fixed asset purchases it should approve and which it should reject. Each proposed fixed asset investment is given a quantitative assessment through this procedure, providing a sound foundation on which to base a decision. In corporate finance, capital budgeting and investment evaluation refer to the planning process used to assess whether a business should make long-term investments in new or replacement machinery.
The term "discounted cash flow" (DCF) refers to a method of valuation that calculates an investment's value based on its anticipated future cash flows. Using estimates of how much money an investment will make in the future, DCF analysis seeks to evaluate the value of an investment today.
The idea that all cash flows happen at the end of a period is one. Another is the prompt reinvestment of all cash inflows at a rate of return equal to the discount rate.
To learn more about capital budgeting refer to:
https://brainly.com/question/24347956
#SPJ4
The following details are provided by Beckett Company:
Initial investment
$2,020,000
Discount rate
12%
Yearly cash inflows
1
$730,000
2
$586,000
3
$586,000
Answers
The NPV of the project is ($483 955.448).
What is the NPV of the project?To calculate NPV, we need to discount the yearly cash inflows at the given discount rate and subtract the initial investment.
Year 1 cash inflow: $730,000
Year 2 cash inflow: $586,000
Year 3 cash inflow: $586,000
Discount rate: 12%
NPV = (Year 1 cash inflow / (1 + discount rate)^1) + (Year 2 cash inflow / (1 + discount rate)^2) + (Year 3 cash inflow / (1 + discount rate)^3) - Initial investment
NPV = ($730,000 / (1 + 0.12)^1) + ($586,000 / (1 + 0.12)^2) + ($586,000 / (1 + 0.12)^3) - $2,020,000
NPV = -$483 955.448.
Read more about NPV
brainly.com/question/18848923
#SPJ4
intro to business edmentum notes for unit 3 and 4? vv high points
Answers
Answer:
The notes can be found on brain.com someone is giving out the notes
Explanation:
I don't remember his name but if you ask nicely then them notes will be yours.
Benjamin Franklin said, “Beware of little expenses. A small leak will sink a great ship. ” What does this mean to a person trying to build financial stability? How would you restate this saying so that it would be clearer to someone trying to grow a budget?
How would you place the order of these steps to build a budget? 1=first 2=the middle step 3=last
______Analyze cash flow and look for ways to increase your income and decrease your expenses....
______Keep track of your spending...
______Identify your income and your expenses....
What are they, and how would you explain their meaning? Give one example of each.
23.Fixed expenses
________________________________________________________________________
Flexible expenses
________________________________________________________________________
Money that comes to you from: Various jobs or work, like cutting grass or babysitting wages,
Full- or part-time employment, Allowances, Odd jobs, Interest and dividends, Other sources, including tips. Is known as your
_________________.
Where does All the money go?
If you are in the habit of buying the 4 for $4 meal special at the local famous fast food restaurant every day of the week for lunch how much would this add up over time? It might taste good going down but what might you be able to save for if you had all that cash in a savings account?
1 day 1 week 1 month 1 year 5 years 10 years
# of Days 26a 27a 28a 29a 30a 31a
4 for$4 Meal 26b 27b 28b 29b 30b 31b
Identify the LIE about Credit cards....
A. Are used to purchase goods and services.
B. Takes money from your checking account when used to pay for purchases.
C. Are subject to interest charges if the balance is not paid in full each month.
Credit Verses Debit
Which card requires you to have enough money at the time you pay for something?
Which card's balance can increase and accrue charges if you do not pay the entire amount each month?
Which card generally offers purchase protections against faulty goods?
Which card(s) may have fees associated with them?
Which card allows you to pay for unexpected emergencies when you do not have enough money?
What are the outcomes to be expected with overspending on your credit card? You need at least two outcomes for full credit
Debit to Income Ratio
After adding your total income, dividing the total monthly bills by the total income, and convert that to a decimal….What would you advise these individuals who are contemplating a large purchase?
Total Income
Total Monthly Bills
Percentage (divide by 100)
Billy $4000
$2800
?
TiQuan $5000
$4000
?
Nadaja $3000
$1000
?
39 (Billy). ________________________________
40 (TiQuan) ______________________________
41 (Nadaja) ______________________________
Which payment arrangement has the worst deal or the higher interest rate you must pay between the instalment loan or the rent to own arrangement?
What three things would you likely need an installment loan to purchase?
Explain how your credit rating would affect your interest rate applied to your installment loan.
Simply put, Finance is the management of ______________________.
Name 2 examples of items that fall under the category of a long-term financial goal.
47.Name 2 examples of items that fall under the category of a short-term financial goal.
48.. Which of the following statements about investing is FALSE?
On average, investing money in the stock market earns a higher return than putting money in a savings account.
Investing is best for long-term financial goals, like paying for retirement.
Investing is a guaranteed way to grow your money.
Investing is riskier than putting money in a savings account.
This is needed To Calculate Simple Interest (Interest = Principal x Rate x Time or I = P x R x T)
Remember to add the Simple Interest to the Principle to get the total to be paid.
Principle
Rate
Time
Interest
Total to be paid
$10,000
15%
5 years
49a
49b
$5,000
5%
8 years
50a
50b
is the purpose of financial insurance agencies?
Answers
Answer: n or f
Explanation:
can someone help? it's accounting !
Answers
Answer: i cant see
Explanation:
Suppose you have $1,325 and plan to purchase a 5-year certificate of deposit (CD) that pays 3.5% interest, compounded annually. How much will you have when the CD matures
Answers
The amount I would have when the CD matures is $1573.68.
What is the amount I would have when the CD matures?When an amount is compounded annually, it means that both the amount invested and the interest already accrued increases in value once in a year.
FV = P (1 + r)^n
FV = Future value P = Present value R = interest rate N = number of years1325 ( 1.035)^5 = $1573.68
To learn more about future value, please check: https://brainly.com/question/18760477
two economists agree that labor market discrimination against certain workers unfairly leads to lower wages for the disfavored group. economist x argues that government intervention is most likely necessary to eliminate this unfair treatment, while economist y argues that the best solution to the unfair treatment is to let the market work to eliminate it on its own.
Answers
Economist Y is most likely to be correct when labor and product markets are highly competitive and the lower wages of the disfavored group result from discrimination by employers. This is because of discrimination by employers.
What is an employee?A worker or manager who works for a business, group, or community is referred to as an employee. The organization's personnel consists of these people. There are various types of employees, but in general, any individual engaged by an employer to do a specific task in exchange for remuneration is considered an employee.
The labor market, often known as the job market, refers to the supply of and demand for labor, in which employees give the supply and employers provide the demand. It is a crucial part of every economy and is closely connected to the markets for capital, goods, and services.
Therefore, Thus option (C) is correct
Learn more about employees here:
https://brainly.com/question/10369837
#SPJ1
According to the unit, what percentage of shoppers used a coupon in 2012?
A. 78%
B. 85%
C. 93%
D. 100%
Answers
today's world, 96% of consumers have used a coupon in the past 90 days. JC Penney tried to break consumers of the coupon habit in 2012 and quickly saw a 23% drop in sales for the first three quarters of 2012. If JC Penney couldn't change people's shopping behavior, you probably can't either.n: so i guess its c
Answer:
78%
Explanation:
I take nutrition and wellness, and this was the correct answer for me. Just took the test as well :P
Which of the following is an example of telecommuting?
A. Setting up a conference call between two different companies
B. Working from home instead of at the company's main office
C. Scheduling a meeting in the middle of the day
D. Using a computer and slideshow during a meeting
Answers
B. Working from home instead of at the company's main office
Have a great day!
An example of is Working from home instead
Telecommuting is also known as Remote work
Telecommuting refers to the ability granted to an employee to work from remote place apart from the office.
The reason why Organization allows telecommuting are:
Its helps to improve employee efficiencyIts offers schedule flexibilityIts improved employee retention and attraction.In conclusion, the mode of getting work done have been increasing in recent time because its saves cost for both the employee and employer.
Learn more about Telecommuting here
brainly.com/question/3594026
please help!! Question: Drake begins wearing knee high socks in his videos and concerts? What
happens to the demand for knee high socks?
please helppp!!
Answers
craig, a marketing manager at helizone inc., rarely takes initiative or suggests new ideas during project meetings. he does his work half-heartedly and needs to be guided by his manager on a regular basis. according to robert kelley's basic styles of followership, craig most likely is a(n)
Answers
According to Robert Kelley's basic styles of followership, Carig most likely is a passive follower.
Robert Kelley categorized fellowship style into five styles. Based on Robers Kelley's basic styles of fellowship these are five styles of fellowship:Exemplary: they are independent, innovative, and willing to stand up to superiors. Conformists: they are very active in doing their organization's work they used to be called "yes people". Passive; they rarely take initiative or suggest new ideas during a project meeting. Alienated: They are highly independent critical thinkers but low in engagement. Pragmatic: they are rarely committed to their group's work goals.
Learn more about fellowship styles at: https://brainly.com/question/7539317
#SPJ4
Which answer provides the best definition of a subsistence crop? crops raised to earn a profit for the family food items harvested from the wilderness crops grown to trade for hardware and lumber plants and animals grown to keep a family alive?
Answers
Answer:
plants and animals grown to keep a family alive
Explanation:
Subsistence farming happens when farmers grow food crops and rear animals just for the needs of themselves and their families. In this type of agriculture, farm output is targeted to for the survival of the family and is mostly for local requirements and it has little or no surplus. Planting decisions are made principally towards the need of the family. They are strictly for family maintenance
Pretty sure its:
plants and animals grown to keep a family alive
Please help. I will mark you as brainliest !!!
How does the value of the cars produced by the Japanese company within the United States
impact the United States' Gross National Product (GNP), and why?
Answers
The reason why is that GDP includes the final value of all goods and services produed within a country, during a specific period of time (usually a year). If the cars are produce in U.S. territory, they are counted as part of U.S. GDP, even if the company is from Japan or any other country.
To examine
the weekly payroll of all employees, one would look at the:
Answers
To examine the weekly payroll of all employees, one would look at the: d. payroll register.
What is the payroll register?The payroll register is a book or record that is used to fill in the details of all the employees and their payment logs. A record of this register is often kept in good condition in case of any future discrepancies that will have to be resolved.
A person who wants to examine the weekly payroll of all employees in an organization must be able to look at the payroll register to know what is obtainable. There, he would find the names of the employees, their job roles and payment record.
Options:
a. W-4
b. employee earnings record
c. W-2
d. payroll register.
Learn more about the payroll register here:
https://brainly.com/question/24265652
#SPJ1
The rate of interest on money held in a savings account, _______ the amount of money saved.
a.
decreases
c.
has no effect
b.
increases
d.
none of the above
Please select the best answer from the choices provided
A
B
C
D
Answers
Hope it helps!
"Monetary policy can be described either in terms of the money supply or in terms of the interest rate." This statement amounts to the assertion that a. the activities of the Federal Reserve’s bond traders are irrelevant if the Federal Reserve decides to target an interest rate. b. our analysis of monetary policy is not fundamentally altered if the Federal Reserve decides to target an interest rate. c. changes in monetary policy aimed at expanding aggregate demand can be described either as increasing the money supply or as increasing the interest rate. d. rightward shifts of the money-supply curve cannot occur if the Federal Reserve decides to target an interest rate.
Answers
Answer:
b
Explanation:
The monetary policy is not fundamently altered
What is the amount of currency of one country that can be traded for one unit of currency of another country?
- Exchange rate
-Foreign exchange
Answers
Market for foreign exchange. Exchange rate; the network of banks and other financial institutions that trade in various currencies.
How much of one currency may be purchased with another?As a result, a reciprocal currency is priced in terms of U.S. dollars per foreign currency unit rather than dollars per foreign currency unit. The EUR/USD currency pair is a typical illustration, where a quote of 1.20 indicates that one euro is equivalent to $1.20 in USD.
Which currency is employed in international trade?The currency
Since the end of World War II, the dollar has served as the primary reserve currency for the whole world and is the most often used currency for international trade.
To know more about Exchange rate and Foreign exchange visit:-
https://brainly.com/question/14231622
#SPJ1
Which professional work habits are Leila and Ryan demonstrating in this scenario?
1 Leila welcomes changes and is willing to learn new workplace procedures. She demonstrates a great deal of
.
2 Ryan always wears a suit and a tie when meeting new clients. He understands the importance of professional
.
Answers
Answer:
1. Adaptability
2. Appearance
Explanation:
On the Test as we speak lol