You Borrow $200 at 10% Per Year and Proceed to Buy

question 46

Multiple Choice

You borrow $200 at 10% per year and proceed to buy Asset XYZ for $200 in the cash market. This asset pays $5 quarterly. You then immediately sell a futures contract at $214 requiring delivery of asset XYZ in three months. Which of the below statements is TRUE?

• A) At the end of three month, the settlement of the futures contract generates a total proceeds of $220.
• B) At the end of three month, the cost of the loan generates a total outlay of $206
• C) Your strategy of selling the futures contract after borrowing money to buy the asset produces a net profit of $15.
• D) None of these

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Definitions:

Examination Rooms

Dedicated spaces within healthcare facilities where medical examinations, consultations, and certain procedures are conducted by healthcare professionals.

Physician

A medical professional who diagnoses and treats illnesses and injuries, offering healthcare advice and intervention.

Medical Assistant

A healthcare professional who supports health care delivery by performing administrative and clinical tasks in hospitals, doctor's offices, and other healthcare facilities.

Examining Table

A piece of medical equipment in clinics and hospitals where patients sit or lie down for examination by healthcare professionals.