If Spot-Futures Parity Exists for an Index Future Then the Future

question 83

Multiple Choice

If spot-futures parity exists for an index future then the future price must equal the:

• A)spot price.
• B)present value of the spot price at the risk-free rate.
• C)present value of the spot price at the market rate.
• D)future value of the spot price at the risk-free rate.
• E)future value of the spot price at the market rate.

Understand the classification and management of inventory in QBO.

Grasp the concept and utility of Bundles in QBO.

Recognize the necessity and components of a good internal control system.

Understand the workflow of customer transactions in QBO, including payment collection and bank deposits.

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Definitions:

Predetermined Overhead Rate

A rate used to apply manufacturing overhead to products or job orders, calculated by dividing estimated overhead costs by an allocation base like direct labor hours.

Machine-Hours

The total hours that machines are operated in the production process, used as a basis for allocating manufacturing overhead to products.

Cost Of Goods Sold

The total cost directly involved in producing goods or services sold during a specific period.

Predetermined Overhead Rate

A rate calculated before a period begins, used to apply overhead costs to products based on a certain activity such as labor hours or machine hours.