User Account

All Pages

The risk-free interest rate is 8 per annum with continuous

Assignment Help Finance Basics
Reference no: EM13485518

A stock index currently stands at 350. The risk-free interest rate is 8% per annum (with continuous compounding) and the dividend yield on the index is 4% per annum. What should the futures price for a 4-month contract be?

Reference no: EM13485518

Questions Cloud

The index is currently 1500 and one contract is for : on july 1 an investor holds 50000 shares of a certain stock. the market price is 30 per share. the investor is
What will this do to the value of the dollar with respect : if the united states imports more goods from abroad than it exports then foreigners will tend to have a surplus of u.s.
An outsider had offered to produce the cameras for 12 each : during 2010 america inc. produced among other products 9500 cameras incurring the following unit costs 5 in direct
An essay from a legal and ethical point of view moral : you believe that your male boss is overly friendly with a female member of your staff and that she is taking advantage
The risk-free interest rate is 8 per annum with continuous : a stock index currently stands at 350. the risk-free interest rate is 8 per annum with continuous compounding and the
The new turn-around management team at ajs pizza : 1.the new turn-around management team at ajs pizza intentionally overestimates significantly the amount of its
What is the difference between apr and ear and in what : what is the difference between apr and ear? and in what different situations would each be used and
The effective annual cost of not taking advantage of the : the effective annual cost of not taking advantage of the 210 net 50 terms offered by a supplier is what percent?please
A futures contract is used for hedging explain why the : a futures contract is used for hedging. explain why the marking to market of the contract can give rise to cash flow

Reviews

Write a Review

Finance Basics Questions & Answers

  Describe capital budgeting involves calculation

Describe Capital budgeting involves calculation of net present value of Avanti, Inc. is considering investing in a new telephone product.

  How much do you need to invest today

How much do you need to invest today (once) to have $89,000 at the end of 19 years if you can earn 3.5% annually?

  What is the initial investment

If the assumed tax rate is 40 percent on ordinary income and capital gains, what is the initial investment?

  At what rate have sales grown

Martell corporation's 2008 sales were $12 million. sales were $6 million five years earlier. to the nearest percentage point, at what rate have sales grown?

  What is the expected premium for a put on google

Using Put-Call parity, and the call valued in the first question, what is the expected premium for a put on Google with the same characteristics as the call in the first question?

  The most appropriate discount rate to use when applying a

1. the most appropriate discount rate to use when applying a fcfe valuation model is the .required rate of return on

  Calculate the cost of capital for the individual components

Calculate the cost of capital for the individual components in the capital structure, and then calculate the weighted average cost of capital for Seabreeze. Consider after-tax cost of capital in your calculations.

  Why market prices are useful to a financial manager

They can be evaluated to determine whether the market in which the manager exchanges goods and services offers true value.

  Define as vulnerable market segments

Segmentation of consumer markets can lead to questionable practices, specifically in targeting what some may define as "vulnerable" market segments. For example, very young children are considered by some to be "vulnerable".

  Calculate the net present value

Calculate the net present value (NPV) for the following 20-year projects. Comment on the acceptability of each. Assume that the firm has an opportunity cost of 14%

  Find the principal repaid in the first year

Find the annual payment of the loan of $20,000 with 7% of interest rate per year if the loan is paid off over the next 5 years. Then, find the principal repaid in the first year, and the balance of this loan at the end of the first year. Include f..

  Computing net proceeds of an ipo

ABC is planning an IPO. Its underwriters say the stock the stock will sell at $20. The direct costs will be $800,000. The underwriters will charge a 7% spread. A - How many shares must be sold to net $30 million?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd