What is the approximate annualized lease rate on the 12-month corn forward contract?
When answering the questions below, refer to the following table of commodity forward and spot prices. The annual risk free interest rate is 4.0%.
Expiration Pork Bellies Corn Soybeans
Time cents/pound cents/bushel cents/bushel
Today=spot 540 212 430
6 months 560 208 440
12 months 590 203 452
18 months 625 200 445
24 months 655 195 437
A)
0.00%
B)
2.25%
C)
4.50%
D)
8.25%
Answer:
D
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Numerous proposals designed to make corporations more sensitive to outside concerns have been offered throughout the past few decades. Generally, these recommendations are of a ________ nature.
A. micro-managerial B. procedural C. substantive D. legally enforceable
Answer the following statements true (T) or false (F)
1. Factory rent, as well as factory property taxes and insurance, are included in manufacturing overhead. 2. Manufacturing companies have inventory accounts, but merchandising companies do not. 3. Freight costs paid to ship raw materials to a company warehouse are considered product costs. 4. Sales commissions are included in manufacturing overhead. 5. In a manufacturing company, advertising and marketing costs are examples of period costs.
Which of the following is an example of an accrual?
A) Purchase of equipment. B) Prepaid insurance. C) Salaries earned but not yet paid. D) All of these choices.
. Which of the following firms would likely pose the least competitive threat?
A. a firm in the same industry and in the same strategic group B. a firm in the same industry and in the nearest strategic group looking to join your group C. a competitor to your product where a high switching cost exists D. a firm that produces substitute goods to your product line