An investor enters into a 2-year swap agreement to purchase crude oil at $105.65 per barrel. Soon after the swap is created forward prices rise and the new swap price on a similar swap is $108.32
If interest rates are 3.0% per year, what is the gain to be made from unwrapping the original swap agreement?
A) $2.67
B) $5.11
C) $5.34
D) $5.67
B
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The ________ is responsible for making federal law.
A. executive branch/President B. judicial branch C. U.S. Conference of Governors D. legislative branch/U.S. Congress
Stock options do not require a cash outlay from the company, while stock appreciation rights often do require a cash outlay
Indicate whether the statement is true or false
Critical thinking and preparation are essential skills for an MPR professional. However, nothing can replace
A) an expensive database. B) experience. C) a generous advertising budget. D) good old-fashioned guesswork. E) hard-ball salesmanship.
Firms initially record property, plant, and equipment, sometimes referred to as fixed assets, at acquisition cost, the cash paid or the fair value of other consideration given in exchange for the asset. Which of the following is not true?
a. Acquisition cost includes all costs necessary to prepare the asset for its intended use. b. Firms capitalize into the asset's carrying amount subsequent expenditures that extend the service life or increase the benefits of a fixed asset beyond those initially anticipated. c. Buildings and equipment have a finite life, so firms must depreciate their acquisition cost less estimated salvage over the expected service life. d. Firms may use a straight-line method or accelerated depreciation methods. e. If new information becomes available that indicates that the expected service life or estimated salvage value differs significantly from that initially anticipated, the firm revises its depreciation claimed in prior years and restates the financial statements.