With regard to a futures contract, the long position is held by a. the trader who plans to hold the contract open for the lengthiest time period. b. the trader who commits to delivering the commodity on the delivery date. c. the trader who bought the contract at the largest discount. d. the trader who has to travel the farthest distance to deliver the commodity. e. the trader who commits to purchasing the commodity on the delivery date.

Answers

Answer 1

Answer:

Answer:

The answer is e. the trader who commits to purchasing the commodity on the delivery date.

Explanation:

The long position in a forward position agrees to buy the stock when the contract expires. The long futures position is an unlimited profit, unlimited risk position that can be entered by the futures speculator to profit from a rise in the price of the underlying

Related Questions

At a sales level of $270,000, the magnitude of operating leverage for Donuts Unlimited is 2.8. If sales increase by 15%, profits will increase by:a. 15%b. 18.67%c. 2.8%d. 42%
A company advertises that its products are environmentally friendly in order to sell to climate-conscious consumers at a higher price. What is this practice called?
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Proceeds from Notes Payable On May 15, Maynard Co. borrowed cash from Texas Bank by issuing a 60-day note with a face amount of $100,000. Assume a 360-day year. Required: a. Determine the proceeds of the note, assuming that the note carries an interest rate of 6%. b. Determine the proceeds of the note, assuming that the note is discounted at 6%.

The average annual return over the period 1886-2006 for stocks that comprise the S&P 500 is 8%, and the standard deviation of returns is 20%. Based on these numbers what is a 95% confidence interval for 2007 returns?

Answers

Answer:

The confidence interval for 2007 returns are 32%, 48%

Explanation:

As per 9% rule

Range = mean +/- 2*Standard deviation

Range = 8 +/- 2*20

Range = 8-40 to 8+40

Range = -32 to 48

Jean Michaud pays his two employees $900 and $1,200 per week. Assume a state unemployment tax rate of 5.7% and a federal unemployment tax rate of 0.6%. What state and federal unemployment taxes will Jean pay at the end of quarter 1 and quarter 2

Answers

Answer:

The quarter has 3 months so all 15 weeks shall have following taxes:

Employee Wages Exempt under FUTA or SUTA

Employee 1

Wages = 15 week x 900 = 13.500

Exempt under FUTA or SUTA = 13,500 - 7,000 = 6.500

Employee 2

Wages = 15 week x 1200 = 18.000

Exempt under FUTA or SUTA = 18.000 - 7,000= 11000

From the above table.

The JM pays employee 1: 900 and employee 2: 1,200. For 15 weeks they were paid,

Employee I is paid, 900 x 15 weeks

= 13,500

Employee 2 is paid, 1200 x 15 weeks

= I 8,000

For employee 1,

= 13,500 - 7,000

Here, SUTA tax is 5.4% on the first 7,000 the employer pays an employee = 6500

For employee 2,

=18,000 - 7000

Here, the SUTA tax is 5.4% on the first 7000 the employer pays an employee =11000

The taxable wages are obtained by deducting.

= (13,500 +18000) - (6,500 +11,000)

= 31500 - 17500

= 14000

The SUTA and FUTA taxes that JM pays at the end of quarter 1 and 2 is, SUTA,

0.057 x 14,000 = $798

FUTA.

0.008 x 14000

= $112

Hence. The SUTA and FUTA taxes paid are $798 and $112 respectively.

Final answer:

Jean Michaud will pay a state unemployment tax of $1,556.10 and a federal unemployment tax of $163.80 per quarter for his two employees.

Explanation:

The question pertains to calculating the unemployment taxes that Jean Michaud will have to pay for his two employees at a state rate of 5.7% and federal rate of 0.6%. Firstly, we calculate the total wages paid to both employees per quarter. One quarter comprises 13 weeks, therefore the total wages paid per quarter would be ($900+$1200) * 13 = $27,300.

Next, we calculate the unemployment taxes. The state unemployment tax would be $27,300 * 5.7% = $1,556.10 and the federal unemployment tax would be $27,300 * 0.6% = $163.80.

Therefore, the state and federal unemployment taxes Jean will pay at the end of quarters 1 and 2 are respectively $1,556.10 and $163.80. Note, these calculations assume that these are the only two employees and their wages are constant throughout these quarters.

Learn more about Unemployment Taxes here:

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What aspects do financial institutions like the Bank of Rhode Island assess before granting funding to businesses

Answers

Answer:

Financial institutions assess the probability of the business paying the loan back, and to do so, they evaluate the financial position of the business, mainly using financial ratios to do so.

For example, to analyze liquidity, the use liquidity rations like the current ratio, the acid test, and the cash ratio.

The also analyze the firm from a revenue standpoint, meaning that the financial institution tries to determine how profitable the company is, and how its profitability will evolve in the term of the loan. To do so, they use asset turnover ratios, economic value added ratios, net income, and even the weighted average cost of capital.

The Orange Lily Law Firm prepays for advertising in the local newspaper. On January 1, Orange Lily paid $3,600 for six months of advertising. How much advertising expense should Orange Lily Law Firm record for the two months ending February 28 under the a. cash basis? b. accrual basis?

Answers

Answer:

a. Cash basis - amount is $3,600

b. Accrual basis - amount is $1,200

Explanation:

Under the cash basis, the amount which will be recorded is as:

In cash basis, it is the method or way of recording the accounting transactions for the revenue and the expenses only when the cash (corresponding) is received or when the payments are made.

So, in this $3,600 is paid, the full amount will be recorded.

Under Accrual basis, the amount which will be recorded as:

In Accrual basis, it is the method or way of recording the accounting transactions for the revenue when it is earned and the expenses is recorded when it is incurred.

So, in this the expense to be recorded for 2 months, it is computed as:

For per month = $3,600 / 6

= $600 per month

For 2 months, it is:

= $600 × 2

= $1,200

Therefore, the amount is $1,200 for 2 months.

During March, the production department of a process operations system completed and transferred to finished goods 17,000 units that were in process at the beginning of March and 150,000 units that were started and completed in March. March's beginning inventory units were 100% complete with respect to materials and 59% complete with respect to conversion. At the end of March, 34,000 additional units were in process in the production department and were 100% complete with respect to materials and 24% complete with respect to conversion. Compute the number of equivalent units with respect to both materials and conversion respectively for March using the weighted-average method.

Answers

Answer:

a)201,000 units

b) 175,167 units

Explanation:

As per the data given in the question,

Details Materials Conversion

Calculation Units Calculation Units

Units completed

and transferred (150,000+17,000)×100% 167,000 (150,000+17,000)×100% 167,000

Ending WIP 34,000×100% 34,000 34,000×24% 8,160

Total units (167,000+34,000) 201000 (167,000+8,167) 175,167

The ease with which resources can be adjusted in response to changes in demand, technology, products and services, and resource availability is known as:

Answers

Answer:

Process flexibility.

Explanation:

The ease with which resources can be adjusted in response to changes in demand, technology, products and services, and resource availability is known as process flexibility.

Process flexibility simply refers to the ability of a firm or company to respond to changes in the production line or manufacturing process of goods to meet the needs of their customers.

For instance, when there is a new technology in the industry, the ability of a company to switch with ease is its process flexibility.

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