What will be the profit-loss and margin account levels

Assignment Help Financial Accounting
Reference no: EM132747366

Question - Today is 5 September 2019 and you are long a future contract on a dividend-paying stock with current price of R150 and has maturity of 10 months. The stock is expected to pay dividends of R2 and R2.5 in 3 months and 6 months from now, respectively. What will be the profit/loss and margin account levels for your positions on 5th October 2019 if the price of the stock increases to R165? Risk free rate is 10%.

Reference no: EM132747366

Questions Cloud

Provide an integrated explanation : Offer various theories for the term structure of interest rates, and then combine these theories to provide an integrated explanation.
Make a guide to leveraging expatriates : Make a guide to leveraging expatriates. The guide should include 4-6 sources that address benefits and challenges of sending expatriates to other countries.
Justifying a model of management : Propose how the business could have operated differently by recommending and justifying a model of management you think could have helped
What potential violations has company committed : You are the Vice President of Human Resources, What potential violations has your company committed with regard to the Americans Disabilities Act, if any?
What will be the profit-loss and margin account levels : The stock is expected to pay dividends of R2 and R2.5 in 3 months and 6 months from now, respectively. What will be the profit/loss and margin account levels
What are some of the shareholder psychological effects : What are some of the shareholder psychological effects when a firm announces share repurchase rather than dividend payout?
Governing the cloud : From the first e-Activity, discuss the key governance factors that organizations must instill before, during, and after a cloud migration.
Represent the flow-of-funds diagram : Mr. Smith has been approved by Finco, a finance company, for a one year loan with a principal of $2,000, an annual simple interest rate of 10%, and interest due
What is the estimated amount of dollars you will receive : What is the estimated amount of dollars you will receive when converting the francs to U.S. dollars in one year at the spot rate at that time

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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