Suppose on Monday June 1, you long and I short the futures contract on 1000 units of commodity, for December delivery. We enter the positions when the futures price is $15 per unit. We are required to post margins equal to 12% of the contract amount. On Tuesday June 2, the December contract settles at $15.75. Between Monday and Tuesday, my return will be what percentage?

a. -4.2%
b. 50%
c. -42%
d. 5%

Answers

Answer 1

Answer: -42%

Explanation:

Based on the scenario in the question, the initial investment will be:

= 15 × 1000 × 12%

= 15 × 1000 × 0.12

= $1,800

We then calculate the return. This will be:

=[(15 - 15.75) × 1,000]/1,800

= -750/1,800

= -0.4166666667

Return = -42%


Related Questions

The most significant conceptual difference between the arbitrage pricing theory (i.e. APT or factor model) and the capital asset pricing model (CAPM) is that APT _____________.

a. places less emphasis on market risk
b. recognizes multiple unsystematic risk factors
c. recognizes only one systematic risk factor
d. recognizes multiple systematic risk factors

Answers

Answer:

Option C: Recognizes only one systematic risk factor

Explanation:

Arbitrage pricing theory (APT) is a theory of risk-return relationships gotten from no-arbitrage and considerations in large capital markets

APT was said to be developed by Steve Ross, 1976 and it uses "No-Arbitrage" Assumption. It was designed mainly to provide "economic" variables to the determination of asset pricing.

capital asset pricing model (CAPM) is simply a model that shows the required rate of return on a security to its systematic risk as taken up or measured by beta.

During the heavy Christmas shopping season, sales of retail stores, online sales firms, and other merchants rise significantly. a. What would you expect to happen to the market for money during the Christmas season

Answers

The money demand curve shifts to the right, as people demand more money for transactions purposes. According to graph 1.1, the demand for money will increase during the festive (Christmas) season.

MD would shift right, MS would remain unchanged and nominal int rates would rise

During the Christmas shopping season, the demand for money increases significantly. To offset the increase in money demand, the Fed must increase the money supply, which will put downward pressure on nominal interest rates.

During the Christmas shopping season, the demand for money increases significantly. If the Fed takes no actions to offset the increase in money demand, then nominal interest rates will:

increase.

HALLOWEEN IS OVER! THANKSGIVING HERE WE COME YAY!! Thanksgiving is one of my favorite holidays! (Christmas is my other favorite) What are your guy's favorite holidays?!

Answers

Answer:

Christmas and Halloween

Explanation:

PERIODT

Answer:

Christmas and Thanksgiving baby

Explanation: purrrrrr

An examination of Hyong Corporation's inventory accounts revealed the following information:

Raw materials, June 1: 46,000 units
Raw materials, June 30: 51,000 units
Purchases of raw materials during June: 185,000 units

Hyong’s finished product requires four units of raw materials. On the basis of this information, how many finished products were manufactured during June?

a. 70,500.
b. 45,000.
c. 57,750.
d. 47,500.
e. None of the other answers are correct.

Answers

Answer:

Production= 45,000 units

Explanation:

Giving the following information:

Raw materials, June 1: 46,000 units

Raw materials, June 30: 51,000 units

Purchases of raw materials during June: 185,000 units

First, we need to calculate the raw material used in production:

Direct material used= beginning inventory + purchases - ending inventory

Direct material used= 46,000 + 185,000 - 51,000

Direct material used= 180,000

Now, the production for the period:

Production= 180,000/4

Production= 45,000 units

A perfectly competitive firm will be profitable if price at the profit-maximizing quantity is above: __________

a. ATC.
b. AVC.
c. AFC.
d. MC.

Answers

Answer:

A perfectly competitive firm will be profitable if price at the profit-maximizing quantity is above: __________

d. MC.

Explanation:

The general rule of profit maximization for a perfectly competitive firm is for the firm (and each firm in the market) to produce the quantity of output where the price (P) = marginal cost (MC).  In this case, the price (P) is a measure of the value that customers place on the good.   The marginal cost (MC) measures what it costs the firm to produce each marginal unit.

HELP IM TIMED!!!!!!!!!
In the inheritance pattern incomplete dominance offspring demonstrate an intermediate form of alleles from the parents. True False

Answers

Answer:

F

Explanation:

Recall British Consols first issued in 1700s are considered perpetuities. If a British Consol will pay 100 GBP annually starting one year from now and interest rate is 5%.

Required:
a. What is this asset worth today?
b. If interest rate is always 5%, what is the asset worth 3 year from now?
c. Does the asset appreciate or depreciate in value?
d. Do you have any return if you are holding an asset that does not change in value? What is your rate of return?

Answers

Answer:

a. Present value of perpetuity today = Perpetuity amount / Interest rate  = 100 / 0.05 = 2,000GBP. Thus, this asset worth 2,000GBP today

b. Value of perpetuity 3 years from now = Perpetuity amount / Rate = 100/.05 = 2000GBP. The asset worth 3 year from now is 2,000GBP.

c. Since this is a perpetuity; it neither appreciate nor depreciate in value provided the interest rate is constant.

d. There will be a return since we are getting cash-flows in a yearly basis; rate of return will be the interest rate = 5%

what is cash flow??????

Answers

Answer:

A cash flow is a real or virtual movement of money: a cash flow in its narrow sense is a payment, especially from one central bank account to another; the term 'cash flow' is mostly used to describe

Answer:

the answer above is right

Explanation:

Mr. David decision to increase inventory holdings resulted from the consistent pressure of Golden Cup’s Board of Directors to increase amount of inventories. Mr. David’s own opinion was that Golden cup is holding enough inventory to keep the business running without costing the company lots of money on inventory carrying costs. On the other hand, BOD believes that in such a dynamic industry, holding more inventory is necessary to keep smooth business operations.


Required:

a. How long does it currently take the company to turnover its inventory?

b. Do you agree with Mr. David’s opinion? Or, With the BOD? And why? Knowing that industry average inventory turnover is 8.

Answers

Answer:

the information is missing, so I looked for a similar question and found the attached image:

a) days inventory on hand = (average inventory / cost of goods sold) x 365 = ($14,000 / $120,000) x 365 = 42.58 days

b) inventory turnover ratio = cost of goods sold / average inventory = $120,000 / $14,000 = 8.57

I agree with Mr. David because the inventory turnover ratio of Golden Cup is already higher than the industry's average. That means that Golden Cup's current inventory level is appropriate and increasing it would only result in higher costs but would have very little influence on the company's sales.

If an industry has exactly 10 firms with identical sales, the four-firm concentration ratio must be:___________

a. 40.
b. 60.
c. 90.
d. 10.

Answers

Answer:

c

Explanation:

def c

California Company uses a predetermined overhead rate based on machine hours to apply overhead. The company has the following estimated costs for next year:

Direct materials: 10,000
Direct labour: 30,000
Sales commissions: 40,000
Salary of production supervisor: 20,000
Indirect materials: 4000
Advertising expense: 8000
Rent on factory equipment: 10000

California Company estimates that 10,000 machine hours will be worked during the year. The predetermined overhead rate per machine hour will be:__________

Answers

Answer:

$3.40 Per Machine Hour

Explanation:

The computation of the predetermined overhead rate is shown below:

As we know that

Predetermined overhead rate is

= Estimated manufacturing overhead ÷ estimated machine hours

where,

Estiamted Manuafctuing overheads is

= Salary of Prodcution Supervisior + Indirect Material + rent on Factory Equipment

= $20,00 + $4,000 + $10,000

= $34,000

And, the estimated machine hours is 10,000

So, the predetermined overhead rate is

= $34,000 ÷ 10,000

= $3.40 Per Machine Hour

Zander buys $1,000 in U.S. Treasury bonds and spends $1,200 on new tires, which are produced domestically, for his car. How much is added to the U.S. GDP because of this?

Answers

Answer:

Amount added in GDP = $2200.

Explanation:

Given:

Spend on treasury bond = $1,000

Spend on tires = $1,200

Find:

Amount added in GDP

Computation:

Amount added in GDP = Consumption + investment

Amount added in GDP = $1200+$1000

Amount added in GDP = $2200

A company purchased a building for $850,000 on January 1, 2010. As of December 31, 2014, $200,000 of accumulated depreciation had been recorded related to this building. The building was sold to another party for $1,250,000 on January 1, 2015. On the sale of this building, the company should recognize:_______

a. A gain of $650,000
b. A loss of $650,000
c. A gain of $600,000
d. A loss of $600,000

Answers

Answer:

On the sale of this building, the company should recognize:_______

c. A gain of $600,000

Explanation:

a) Data and Calculations:

The cost for the Purchase of building on January 1, 2010 = $850,000

Accumulated depreciation as of December 31, 2014 =           200,000

Book value of building as of December 31, 2014 =               $650,000

Sale proceeds on January 1, 2015 =                                    $1,250,000

Gain from the sale of the building =                                      $600,000

Meadow Company produces hand tools. A sales budget for the next four months is as follows: March 10,800 units, April 13,300, May 16,100 and June 21,200. Meadow Company’s ending finished goods inventory policy is 20% of the following month’s sales. March 1 beginning inventory is projected to be 2,160 units. How many units will be produced in March?

Answers

Answer:

Production= 11,300 units

Explanation:

Giving the following information:

Sales:

March 10,800 units

April 13,300

Meadow Company’s ending finished goods inventory policy is 20% of the following month’s sales.

March 1 beginning inventory is projected to be 2,160 units.

To calculate the production for March, we need to use the following formula:

Production= sales + desired ending inventory - beginning inventory

Production= 10,800 + (13,300*0.2) - 2,160

Production= 11,300 units

On December 31, 2019, Hamilton Inc. sold a used industrial crane for $1,000,000 cash. The original cost of the crane was $5.22 million and its accumulated depreciation equaled $4.31 million on December 31, 2019. What is the gain or loss from the December 31, 2019 equipment sale?a. $910,000 gain.b. $90,000 gain.c. $910,000 loss.d. $90,000 loss.

Answers

Answer:

Gain= $90,000

Explanation:

Giving the following information:

Selling price= $1,000,000

Original price= $5,220,000

Accumulated depreciation= $4,310,000

First, we need to calculate the book value:

Book value= purchase price - accumulated depreciation

Book value= 5,220,000 - 4,310,000

Book value= $910,000

Now, if the selling price is higher than the book value, the company gain from the sale:

Gain/loss= selling price - book value

Gain/loss= 1,000,000 - 910,000

Gain= $90,000

Can someone please answer A-E please

Answers

I’m gonna need more point to answer that many questions L.mao

Jessica saw an advertisement in the newspaper in which a company was selling its product in the local supermarket for $99, thus offering a discount of $25. Jessica considered it a good offer and bought the product. Later, Jessica came to know that the company sells the same product to direct consumers for $90. Which right was violated by this deceptive advertisement?
A.
right to choose
B.
right to redress
C.
right to be heard
D.
right to information
E.
right to safety

Answers

c: right to be heard

Answer: C

Explanation: right to be heard.

Calculate the required rate of return for Mudd Enterprises assuming that investors expect a 3.7% rate of inflation in the future. The real risk-free rate is 1.5%, and the market risk premium is 4.5%. Mudd has a beta of 2.3, and its realized rate of return has averaged 9.5% over the past 5 years. Round your answer to two decimal places. %

Answers

Answer:

15.55%

Explanation:

Calculation for the required rate of return for Mudd Enterprises

Using this formula

Required rate of return=Risk free rate+(Market risk premium +Stock beta)

Let plug in the formula

Required rate of return=(3.7%+1.5%)+4.5%(2.3)

Required rate of return=5.2%+0.1035

Required rate of return=0.1555*100

Required rate of return=15.55%

Therefore the Required rate of return is 15.55%

Suppose the reserve requirement ratio is 0.20 and the central bank carries out an open market sale of government bonds with Bank A in the amount of $20,000. Deposits at Bank A would

Answers

Answer:

Note: The complete question is attached below

When reserve ratio is 0.20, Deposits at Bank A would decrease by $20,000.00 and total ultimate impact on money supply would be a change of $-100,000.00 (= -$20,000 / 0.2), reflecting a money multiplier of 5.00 (= -$100,000 / -$20,000).

A bonds are defined as the securities under which the lender lend some money in order to earn regular interest amount. Therefore, Deposits at Bank A would be decreased.

What is the term Central Bank about?

Central banks are those banks that serve the country's banking system. They provide money transfers back and forth between banks and governmental institutions.

Solution:

When reserve ratio is 0.20, Deposits at Bank A would decrease by $20,000.00 and total ultimate impact on money supply would be a change of $-100,000.00 (= -$20,000 / 0.2), reflecting a money multiplier of 5.00 (= -$100,000 / -$20,000).

Learn more about central bank, refer to the link:

https://brainly.com/question/25247091

Green tea Oreos in China, chocolate and peanut butter Oreos in Indonesia, and banana dulce de leche Oreos in Argentina are examples of Kraft using ________ strategy.

a. an international
b. amultidomestic
c. a single country
d. a transnational

Answers

Answer:

a. an international

Explanation:

ABAC Farms expects to sell 25,000 units of its product at $11 per unit and to incur variable costs per unit of $6. Total fixed costs are $70,000. The total contribution margin is:

Answers

Answer: $125,000

Explanation:

The Contribution margin is the Sales revenue less the Variable cost.

Revenue

= 25,000 * 11

= $275,000

Variable costs

= 25,000 * 6

= $150,000

Total Contribution Margin

= 275,000 - 150,000

= $125,000

what is the likely reason an investor in one state would buy local government bonds in another state

Answers

Explanation:

because unlike to another state is not the same there in Philippines a more education is quality and a projects and a good transformations are a big deal to us as a part of a responsible woman being and this world. And I thank you

discuss types of assets? In two or three sentences.​

Answers

Answer:

Examples of assets include:

Cash and cash equivalents.

Accounts Receivable.

Inventory. It is often deemed the most illiquid of all current assets - thus, it is excluded from the numerator in the quick ratio calculation.

Investments.

PPE (Property, Plant, and Equipment) ...

Vehicles.

Furniture.

Patents (intangible asset)

A company shows a $600 balance in Prepaid Rent in the Unadjusted Trial Balance columns of the work sheet. The Adjustments columns show expired rent of $200. This adjusting entry results in:________

a. $200 decrease to net income
b. $200 increase to net income
c. $200 different between the debit and credit columns of the Unadjusted Trial Balance
d. An error in the Balance Sheet

Answers

Answer:

$200 decrease in net income.

Explanation:

Based on the information given we were told that the balance in Prepaid Rent of the company Unadjusted Trial Balance columns of the work sheet shows the amount of $600 in which the the company Adjustments columns show expired rent of the amount of $200 which means that the the company adjusting entry will results in $200 DECREASE IN NET INCOME because expired rent of the amount of $200 will be deducted from the Prepaid Rent of the amount of $600 in the Unadjusted Trial Balance columns of the work sheet.

Johnson Motors' bonds have 10 years remaining to maturity. Interest is paid annually, the bonds have a $1,000 par value, and the coupon rate is 8 percent. The bonds have a yield to maturity of 9 percent. What is the current market price of these bonds?

Answers

Answer:

$935.83

Explanation:

market price of the bonds:

PV of face value = $1,000 / (1 + 9%)¹⁰ = $422.41

PV of coupon payments = $80 x 6.4177 (PV annuity factor, 9%, 10 periods) = $513.42

current market price = $935.83

Since the market rate is higher than the coupon rate, the bonds will be sold at a discount.

how often do you rely on your time management skills to meet deadlines

Answers

Answer:

I usually rely on time management skills to meet deadlines all the time. If I look into my calendar I just see what's due first and then do only that work. commonly we have relied on google and to tell us what's do... especially online with so many assignments due at different times it could be very useful.

Explanation:

two types of purchase orders.

Answers

Explanation:

blanket purchase order and contract purchase order

standard purchase order
blanket purchase order
contract purchase order
planned purchase order

1. What is the percentage change in the PV of $100 due in 1 year when the interest rate changes from 5% to 10%

Answers

Answer:

Percentage decreased by 4.5%

Explanation:

Present value for 5%

Present value for 5% = 100 / (1+5%)

Present value for 5% =100/1.05

Present value for 5% = $95.24  (Approx)

Present value for 10%

Present value for 10% = 100 / (1+10%)

Present value for 10% =100/1.1

Present value for 10% = $90.91   (Approx)

Percentage Change = [(90.91/95.24)-1]100

Percentage Change = -4.5%  

Percentage decreased by 4.5%

Oriole's Copy Shop bought equipment for $458400 on January 1, 2020. Oriole estimated the useful life to be 3 years with no salvage value, and the straight-line method of depreciation will be used. On January 1, 2021, Oriole decides that the business will use the equipment for a total of 5 years. What is the revised depreciation expense for 2021?

Answers

Answer:

the revised depreciation expense for 2021 is $61,120

Explanation:

The computation of the revised depreciation is shown below:

Annual Depreciation is

= $458,400 ÷ 3 years

= $152,800

Now the book value would be

= $458,400 - $152,800

= $305,600

Now the revised depreciation is

= $305,600 ÷ 5 years

= $61,120

Hence, the revised depreciation expense for 2021 is $61,120

Calvin received bimonthly paychecks of $2007.25 last year. If 17.1% of his yearly income got withheld for federal income tax. How much got withheld for federal income tax from each of Calvin's paychecks last year?

Answers

Answer:

343$

Explanation:

2007.25-17.1%=1664.01025

2007.25-1664.01025 = 343.23975

Answer:

343.23

Explanation:

Other Questions
A number with three digits will open up this lock. These clues will help you find it before the turkey burns hard as a rock. Drawing a number line might help you too, Enter the number below when you are through! My number has ones, tenths, and hundredths Rounding to the nearest whole number, you get 4 Rounding it to the nearest tenth, you get 3.5 The number of hundredths is greater than 3 7 What is the meaning of Mark Antonys speech when Caesar died? Plzzzz helpppp irregular verbs in present tense in yo form i rlly need thiss why was it difficult to restrain the crowd? [2] Why are the cities of Ancient India significant? What risks did miners face? True or false Scripts are composed of two parts. Closest to the surface of our awareness reside the directions for how we think, feel, and behave while deeper lies our core beliefs. The reflected ray of light from an object like mirror will be __________. What are the correct units of density List all 3-digit numbers which are 19 times the sum of their digits. please help with #2 ill mark brainliest Salmon, Inc. issues 505,000 shares of preferred stock for $35 a share. The stock has a fixed annual dividend rate of 5% and a par value of $14 per share. The current price of the preferred stock is $37 a share. If sufficient dividends are declared, preferred stockholders can anticipate receiving annual dividends of:A. $0.70 per share.B. $1.75 per share.C. $1.85 per share.D. $1.05 per share. Find the solution of the system of equations. First equation,- 2x - 5y = -15Second equation, -9x + 15y = -30Will mark brainliest HELP PLSSSS I WILL BE SO APPRECIATIVE:))) What strategies do you think an animal could use to cope with the dry conditions in a desert? When Marion accidentally wounds Robin Hood, not realizing who he is, Robin Hood responds in this way:"'Twas nothing," he replied laughingly, "so long as it brought me you."What character trait does Robin Hoods reply show?a forgiving naturea tendency to seek revengefearfulnessarrogance n which countries do most of the population belong to the same ethnic group? Swaziland Kenya Lesotho Somalia Nigeria A copy machine makes 126 copies in 4 minutes and 30 seconds. How many copies does it make per minute? Identify different ways of interpreting the Constitution. (Site 1) How will humans be affected by changes in the climate?I need a short answer