On March 1 the spot price of a commodity is $20.00 and the July futures price is $18.75. On June 1 the spot price is $24.10 and the July futures price is $23.50. A company entered into a futures contracts on March 1 to hedge the purchase of the commodity on June 1. It closed out its position on June 1. What is the effective price paid by the company for the commodity?
In: Finance
On March 1, the price of a commodity is $1,000, and the December futures price is $1,015. On November 1, the price of commodity is $980, and the December futures price is $981. A producer of the commodity entered into a December futures contracts on March 1 to hedge the sale of the commodity on November 1. The producer closed out its position on November 1. The hedging futures makes_____.
loss
gain
In: Finance
Entering foreign markets, by definition, means not investing in a firm's home country. For example, Nissan closed factories in Japan and added a new factory in the United States. GM shut down factories at home but kept them open in Europe. Do you see any ethical dilemmas here?
Please answer in detail in no less than 2 paragraphs
In: Economics
The market price for Microsoft Corporation closed at $55.48 and $46.45 on December 31, current year, and previous year, respectively. The dividends per share were $1.24 for current year and $1.12 for previous year.
a. Determine the dividend yield for Microsoft on December 31, current year, and previous year. Round percentages to two decimal places.
b. Interpret these measures
In: Accounting
Consider the mathematical system with the single element {1} under the operation of multiplication. Answer and explain the following:
a) Is the system closed?
b) Does the system have an identity element?
c) Does 1 have an inverse?
d) Does the associative property hold?
e) Does the commutative property hold?
f) Is {1} under the operation of multiplication a commutative group?
In: Advanced Math
Compare the impact of an increase in the government's budget deficit on national saving, interest rate and investment spending in two cases: a small open economy and a closed economy. The two economies are otherwise comparable. Assume prices are flexible and that factors of production are fully employed in both economies. Assume there is perfect capital mobility for the small open economy. (125 words maximum)
In: Economics
In 1979, the Federal Reserve Board sought to lower inflation in the U.S. through a contractionary monetary policy. GDP fell much more severely than expected, as did the rate of inflation. Why would the open-economy IS/LM/BP model do a better job of explaining the depth of the recession and the rapid decline in inflation than the closed economy IS/LM model?
In: Economics
Which of the following is false?
A. closed primaries allow independents to participate in the party's primary of their choosing
B. open primaries allow independents to participate in the party's primary of their choosing.
C. the goal of the primary is to reduce the number of candidates running in the general election.
D. some states use the caucus method to determine which candidate the state parties will support in the primary.
In: Economics
In: Advanced Math
In a closed economy, a government sees its role growing with the economy, i.e.
GY=g0+g1Y, where g0> 0 and 0 <g1< 1.
(a) Solve for the equilibrium level of income and derive the income multiplier.
(b) Analyze the effects of an increase in the autonomous component of public spending on the economy when (i) wages and prices are fixed; (ii) wages and prices are flexible.
In: Economics