The Spot Price of an Asset Is $50

question 18

Multiple Choice

The spot price of an asset is $50.The expected return on the asset is 10% a year (in simple terms) and the standard deviation of these returns is 20%.The risk-free rate of interest is 5% a year in simple terms.What is the one-year forward price of the asset?

• A)$52.50
• B)$55.00
• C)$60.00
• D)Cannot be calculated from the given information.

Recognize the utility of plasmids as vectors and their characteristics that facilitate genetic engineering.

Understand the construction and purpose of genomic and cDNA libraries and their applications in research.

Understand the basic concepts and legal framework governing corporations, including types and characteristics.

Recognize the regulatory differences between for-profit, not-for-profit, and S corporations.

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Definitions:

Observed Score

The score that is recorded or observed. See True Score.

Error Score

The difference between observed values and the values predicted by a model or measure, indicating measurement error or variance.

True Score

The score that, if it could be observed, would reflect the actual ability or behavior being measured. See Observed score.

Accounts Receivable Turnover

A financial metric indicating how many times a company collects its average accounts receivable within a certain period.