Estimate the futures price

Assignment Help Financial Accounting
Reference no: EM132863877

Question - The S&P 500 index is 1,400. The six-month risk-free rate is 4% per annum and the dividend yield over the next six months is 2% per annum. Estimate the futures price and the initial value of the futures contract. All interest rates and dividend yields are continuously compounded.

Reference no: EM132863877

Questions Cloud

Describe briefly the potential consequences : Describe briefly the potential consequences of each of the following working capital strategies on the profits and liquidity of business: (1) Aggressive policy
Analysis of network society and role of technology : Analysis of network society and role of technology in the Information Age - networks that constitute the core of the global network society over
How much is taken to profit or loss : How much is taken to profit or loss a result of the foregoing events affecting the equity investments for the year ended December 21, 2020
Important csr initiative : What do you feel is the most important CSR initiative that a company should make a priority for their organization? Justify your answer.
Estimate the futures price : The six-month risk-free rate is 4% per annum and the dividend yield over the next six months is 2% per annum. Estimate the futures price
Communicate the competitiveness strategies to stakeholders : Strategy or plan for Disney company to communicate the competitiveness strategies to stakeholders
What is the present value of the annuity : Suppose that an annuity pays 20 annual payments of $1540, with the first payment coming 11 years from now. What is the present value of the annuity
Present the oli framework : Present the OLI framework, and discuss how the framework could be applied in an analysis of a multinational enterprise (MNE) operating
Determine the cost of sales for the period amounted : The following information is available for the Golden Retriever Company for the current year: Gross profit P968,000. Determine the cost of sales for the period

Reviews

Write a Review

Financial Accounting Questions & Answers

  Which of the funds in a government are accounted

Which of the funds in a government are accounted for in the same manner because their objective is to measure net income on a going-concern basis except

  Prepare the journal entries to record the sale of building

Prepare the journal entries to record the sale of the building after having used the revaluation model using the proportionate method

  How would you choose to finance the equipment

You currently own 100% of the business (equity valued at $100,000), with no long term debt. How would you choose to finance the equipment

  How do prepare an income statement for presotto realty

How do prepare an income statement for Presotto Realty, owned by Mike Presotto, for the three month period ending June, 05, 2020.

  Periodic inventory-calculate amount of net income reported

ABC Company employs a periodic inventory system and sells its inventory to customers for $20 per unit. ABC Company had the following inventory information available for the month of May: Calculate the amount of net income reported on ABC Company's in..

  Find and calculate the monthly payment for each

Find and Calculate the monthly payment for each. Property taxes and insurance will add $1,000 per month to whichever mortgage they choose.

  Create a journal entries to both reimburse the fund

Prepare journal entry to reimburse it on January 8. Create a journal entries to both reimburse the fund and increase it to $240 on January 8, assuming no entry

  How many years does take to make the lifetime subscription

Using a discount rate of 5%, how many years does it take to make the lifetime subscription the better option compared to yearly payments?

  Describe the risk associated with netflixs investment

Describe the risk associated with Netflixs investment in content-Describe the risk associated with Outerwall Inc.'s investment in content.

  What would be the option payoff and profit

If the $-€ spot exchange rate is $1.45/€ on the contract expiration date, would you exercise the call option? What would be the option payoff and profit?

  What is the net present value of project in canadian dollars

The current spot rate is C$1=$0.8637. What is the net present value of this project in Canadian dollars using the foreign currency approach?.

  What amount must john report in his gross income

John worked for ABC corp. and earned a salary of $100,000. John also received, as a fringe benefit, group-term life insurance at twice his salary. Assume the annual IRS established uniform cost of insurance is 2.75 per $1,000. What amount must John r..

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!

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