The spot price of gasoline is 258 cents per gallon and the annualized risk free interest rate is 4.0%
Given a lease rate of 1.0%, a continuously paid storage rate of 0.5%, and a convenience yield of 0.75%, what is the no-arbitrage price range of a 1-year forward contract (in cents)?
A) 265.19 to 267.19
B) 258 to 265.19
C) 258 to 267.19
D) 247.16 to 265.19
A
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After closing the temporary owners' equity accounts into Income Summary, and after allocating the net income and closing the partners' drawing accounts, assume the partners' capital accounts had credit balances as follows: Rhodes, $40,000; Serrata, $60,000; Shepard, $75,000 . Partners share profits and losses as follows: Rhodes, 20%; Serrata, 30%; and Shepard, 50%. If Shepard retired and withdrew
$85,000 in settlement of his equity and settlements are allocated according to capital interests, the amount entered in Rhodes' capital account would be a a. $4,000 debit. b. $4,000 credit. c. $6,000 debit. d. $6,000 credit.
Portfolio A has but one stock, while Portfolio B consists of all stocks that trade in the market, each held in proportion to its market value. Because of its diversification, Portfolio B will by definition be riskless.
Answer the following statement true (T) or false (F)
Beth has two engineers assigned to her project and does not have access to more even if the result means extending the completion date on her project. She is managing a(n) ________ -constrained project.
Fill in the blank(s) with the appropriate word(s).
A business repays the amount borrowed on a note with cash. Which of the following accounts is debited?
A) Cash B) Accounts Payable C) Notes Payable D) Notes Receivable