A Short Forward Contract That Was Negotiated Some Time Ago

question 4

Multiple Choice

A short forward contract that was negotiated some time ago will expire in three months and has a delivery price of $40.The current forward price for three-month forward contract is $42.The three month risk-free interest rate (with continuous compounding) is 8%.What is the value of the short forward contract?

• A) +$2.00
• B) −$2.00
• C) +$1.96
• D) −$1.96

Describe effective practices for appreciating and utilizing classroom volunteers.

Understand the practice and impact of homework on student learning and family life.

Identify strategies for creating a community of learners within the classroom.

Comprehend the significance and methods of family literacy practices in supporting student learning.

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Definitions:

Adam Smith

An 18th-century Scottish economist and philosopher, best known for his theories on free market economies and the concept of 'invisible hand' guiding supply and demand.

Government Duties

Financial charges imposed by the government on goods, services, or activities, primarily focused on imports and exports.

Marginal Rates

Rates that apply to the next dollar of taxable income; often used in the context of income tax, where different income levels are taxed at different rates.

Taxable Income

The portion of an individual's or corporation's income that is subject to taxes by government authorities.