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NEW QUESTION: 1
The annual borrowing rate for investors is 10% per annum. What is the par no-arbitrage futures price for delivery one year hence for a stock currently selling in the spot market at $100 ? Assume the stock pays no dividends.
A. $100
B. $110
C. $105
D. $90
Answer: B
Explanation:
Explanation
The no-arbitrage futures price for the stock is the current spot price plus the carrying cost for one year, which in this case is $100 * 10% =$10. Therefore the no-arbitrage futures price for the stock is $110.
($100*(1+10%), or $100 + $10.)

NEW QUESTION: 2
The sharing of important financial information with employees based upon a foundation of trust and commitment to training is known as
A. Quality circles.
B. Self-managed teams.
C. Impression management.
D. Open-book management.
Answer: D
Explanation:
Open-book management involves sharing important financial information with trained and empowered employees. This approach is founded on trusting employees, commitment to their training, and waiting patiently for results.

NEW QUESTION: 3

A. IBM Spectrum NAS
B. IBM Elastic Storage Server
C. IBM Spectrum Control Storage Insights
D. IBM Spectrum Connect
Answer: D