Suppose That the Current Level of the S&P 500 Index

question 6

Multiple Choice

Suppose that the current level of the S&P 500 Index is 1,100. The prospective dividend yield is 3 percent, and the current risk-free interest rate is 7 percent. What is the value of a one-year futures contract on the index? (Assume all dividends are paid at the end of the year.)

• A)1,056
• B)1,144
• C)1,210
• D)995

Identify the effects of transportation costs and trade barriers on international trade.

Distinguish between foreign direct investment and foreign portfolio investment.

Analyze the relationship between saving, investment, and international capital flows.

Comprehend how changes in national saving and investment levels affect trade balances.

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Definitions:

Maslow's Hierarchy

A psychological wellness theory based on meeting fundamental human needs in order of importance, leading to self-actualization.

Compatible Supervisor

A supervisor whose management style, personality, and values align well with those of their subordinates, fostering a positive and productive work environment.

Job Enrichment

A method to motivate employees by giving them more responsibilities and variety in their jobs, enhancing job depth.

Core Job Characteristics

Fundamental attributes of a job that affect an employee's motivation and satisfaction, such as skill variety and task significance.