Suppose You Sell a Three-Month Forward Contract at $35

question 44

Multiple Choice

Suppose you sell a three-month forward contract at $35.One month later,new forward contracts with similar terms are trading for $30.The continuously compounded risk-free rate is 10 percent.What is the value of your forward contract?

• A)$4.96
• B)$5.00
• C)$4.92
• D)$4.55
• E)none of the above

Describe mnemonic devices and their effectiveness in memory retention.

Analyze the effect of memory on perception and behavior.

Understand the significance of memory research in diagnosing and treating memory-related conditions.

Understand the concept and application of 360-degree feedback.

---

Definitions:

Explicit Cost

The monetary payment made by a firm to an outsider to obtain a resource.

Accounting Profits

The net income a company has after subtracting all costs and expenses from total revenue, as recognized in financial statements.

Opportunity Cost

The value of the next best alternative that is foregone as a result of making a particular decision.

Accounting Profits

The total revenues of a business minus the explicit costs, essentially the net income on the financial statements.