Is the futures price of a stock index greater than or less than the expected future value of the index? Explain your answer.

1 answer:

8 0

Answer: The futures price can either exceed or fall below the expected value. Explanation: Initially, it is essential to define futures price and stock index. Futures pricing may be either above or below the anticipated spot prices. When futures rates are lower than spot prices, the situation is recognized as normal backwardation. Conversely, when futures rates surpass expected spot prices, it is regarded as normal contango.

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Loop 1604 Inc. has prepared a static budget at the beginning of the month. At the end of the month the following information is

Scilla [3833]

Answer:

The variance for Sales Revenue in the flexible budget amounts to $3,960 Favorable

Explanation:

Initially, the provided budget is a static budget, which is essential for determining the flexible budget variance for Sales Revenue.

The flexible budget is created at the same quantity level as the actual.

Thus, the flexible budgeted sales for the month is 990 units at a price of $70 per unit, matching that of the static budget.

Consequently, the Variance is computed as Standard Flexible Budgeted Sales minus Actual Sales

Standard Flexible Budgeted Sales = 990 $\times$ $70 = $69,300

Actual Sales Revenue = 990 $\times$ $74 = $73,260

Because the actual revenue exceeds the budgeted sales, this is considered favorable.

The Flexible Budget Variance for Sales Revenue is calculated as $69,300 - $73,260 = $3,960

Since actual revenue surpasses the budgeted amount, this results in a favorable variance.

The flexible budget variance for Sales Revenue equals $3,960 Favorable

3 0

1 month ago

Harry and Meghan have considered starting their own business but are concerned about the possibility of losing even their person

stepan [3596]

Response:

La opción correcta es D, formar una corporación.

Justificación:

Elegí esta respuesta porque la responsabilidad limitada se aplica a una corporación, que se diferencia de otros tipos de negocios.

El concepto de responsabilidad limitada significa que los accionistas en una compañía de responsabilidad limitada solo son responsables hasta el monto que han aportado a través de las acciones que poseen.

Si la empresa incurre en deudas, no se les pedirá a los accionistas que cubran estas deudas con su propio dinero, lo que protege los bienes personales de Harry y Meghan.

4 0

2 months ago

In marketing, the idea that people are willing to give up something of value or to experience costs (e.g., time, money, embarras

Scilla [3833]

Response: Exchange

Clarification: In marketing, an exchange occurs whenever individuals trade goods or services to fulfill a need or desire by offering something of value in return. Each exchange should create "utility," which signifies that the worth of the item given in trade is less than what is gained from the trade. Thus, the concept of individuals being prepared to sacrifice something valuable or to face costs such as time, money, embarrassment, or the discomfort involved in altering habits to obtain something valued is referred to as exchange.

4 0

1 month ago