Suppose You Buy a One-Year Forward Contract at $65

question 59

Multiple Choice

Suppose you buy a one-year forward contract at $65.At expiration,the spot price is $73.The risk-free rate is 10 percent.What is the value of the contract at expiration?

• A)$8.00
• B)-$8.00
• C)$0.00
• D)$7.27
• E)none of the above

Understand the eligibility and restrictions of American opportunity and lifetime learning credits.

Recognize the criteria for claiming the child tax credit and credit for child and dependent care expenses.

Identify the phase-out income ranges for various tax credits.

Differentiate between refundable and nonrefundable tax credits.

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Definitions:

Dependent Variable

The variable in an experiment that is expected to change as a result of manipulations made to the independent variable.

Dependent Variable

In scientific research, the variable that is being tested and measured; it is expected to change as a result of variations in the independent variable.

Independent Variable

The variable that is changed or controlled in a scientific experiment to test the effects on the dependent variable.

Independent Variables

In experimental research, variables that are manipulated or controlled by the researcher to study their effect on dependent variables.