The spot price of the market index is $900. A 3-month forward contract on this index is priced at $930. The market index rises to $920 by the expiration date. The annual rate of interest on treasuries is 2.4% (0.2% per month)
What is the difference in the payoffs between a long index investment and a long forward contract investment? (Assume monthly compounding.)
A) $10.84
B) $24.59
C) $26.40
D) $43.20
B
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A professor at a local community college noted that the grades of his students were normally distributed with a mean of 74 and a standard deviation of 10. The professor has informed us that 7.5 percent of his students received A's while only 2.25 percent of his students failed the course and received F's. a. What is the minimum score needed to make an A? b. What is the maximum score among those who received an F? c. If there were 5 students who did not pass the course, how many students took the course?
What will be an ideal response?
Edgar possesses a check that is "payable to cash.". Fawn steals the check and delivers it to Godfrey, an innocent third person. All rights to the check are
a. Edgar's. b. Fawn's. c. Godfrey's. d. lost.
If a party wishes to appeal from a lower court decision in a state court, which of the following is true about the right of appeal:
a. it is a matter of right to at least one higher court b. it is a matter of right to two levels of appellate review c. it is a matter of right to the state supreme court d. it is a matter of right to take the case to the federal system e. it is a matter of right to have the cost borne by the state
Backward sensitivity analysis software is used for:
A) supply chain optimization. B) historical what-if analysis. C) goal seeking. D) reverse forecasting. E) customer analysis.