The multiplier for a futures contract on a certain stock market index is $250. the maturity of the contract is one year, the current level of the index is 1,500, and the risk-free interest rate is 0.2% per month. the dividend yield on the index is 0.1% per month. suppose that after one month, the stock index is at 1,533.

a. find the cash flow from the mark-to-market proceeds on the contract. assume that the parity condition always holds exactly. (do not round intermediate calculations. round your answer to 2 decimal places.) cash flow $

b. find the holding-period return if the initial margin on the contract is $15,000. (do not round intermediate calculations. round your answer to 2 decimal places.) holding-period return %

Collective bargaining provides for a representative of employees to negotiate with a representative of management over labor issues including wages. true or false?

Sauer food company has decided to buy a new computer system with an expected life of three years. the cost is $440,000. the company can borrow $440,000 for three years at 14 percent annual interest or for one year at 12 percent annual interest. assume interest is paid in full at the end of each year. a. how much would sauer food company save in interest over the three-year life of the computer system if the one-year loan is utilized and the loan is rolled over (reborrowed) each year at the same 12 percent rate? compare this to the 14 percent three-year loan.

Martinez company has the following two temporary differences between its income tax expense and income taxes payable. 2017 2018 2019 pretax financial income $873,000 $866,000 $947,000 (2017' 2018, 2019) excess depreciation expense on tax return (29,400 ) (39,000 ) (9,600 ) (2017' 2018, 2019) excess warranty expense in financial income 20,000 9,900 8,300 (2017' 2018, 2019) taxable income $863,600 $836,900 $945,700(2017' 2018, 2019) the income tax rate for all years is 40%. instructions: a. prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2017, 2018, and 2019. b. assuming there were no temporary differences prior to 2016, indicate how deferred taxes will be reported on the 2016 balance sheet. button's warranty is for 12 months. c. prepare the income tax expense section of the income statement for 2017, beginning with the line, "pretax financial income."