Consider the futures contract written on the S&P 500 index and maturing in one year. The interest rate is 3.9%, and the future value of dividends expected to be paid over the next year is $19. The current index level is 1,449. Assume that you can short sell the S&P index. a. Suppose the expected rate of return on the market is 8.4%. What is the expected level of the index in one year?
b. What is the theoretical no-arbitrage price for a 1-year futures contract on the S&P 500 stock index?
c. Suppose the actual futures price is 1,452. Is there an arbitrage opportunity here?

Analyzing operational changes operating results for department b of delta company during 2016 are as follows: sales $540,000 cost of goods sold 378,000 gross profit 162,000 direct expenses 120,000 common expenses 66,000 total expenses 186,000 net loss $(24,000) suppose that department b could increase physical volume of product sold by 10% if it spent an additional $18,000 on advertising while leaving selling prices unchanged. what effect would this have on the department's net income or net loss? (ignore income tax in your calculations.) use a negative sign to indicate a net loss answer; otherwise do not use negative signs with your answers. sales $answer cost of goods sold answer gross profit answer direct expenses answer common expenses answer total expenses answer net income (loss) $answer

Walking through the grocery store, ramon sees a "buy 2, get 1 free" deal on laundry detergent. even though he currently has plenty of detergent he decides to take home all three bottles. ramon's decision seems to have been based mostly on his immediate need for the detergent the low price of alternative brands the limited income he presently earns the sale price offered for the detergent

What will be the total costs for tara's first year at the out-of-state college?