A trader owns a commodity as part of a long-term investment portfolio. The commodityprovides no income and has no storage costs. The trader can buy the commodity for $1,250 per ounce and sell it for $1,249 per ounce. The trader can borrow funds at 5.2% per year and invest funds at 4.8% per year(both with continuous compounding).The price of a forward contract on this commodity with expiration date in one year is F. Supposethe bid and offer for theforward price are the same. Consider the following two strategies.-Strategy A: Borrow $1,250; buy one ounce of the commodity; and enter aforward contract to sell one ounce of the commodity in one year.-Strategy B: Shortone ounce of the commodity; invest the money received from sales; and enter a forward contract to buy one ounce of the commodity in one year.1) What is the trader’s profit in one year if Strategy A is taken?2) What is the trader’s profit in one year if Strategy B is taken?3) What is the range of Fthat would yield NO arbitrage opportunities?Hint: Although the profitsdonot depend on the spot price of the commodity in one year, you may assume it to be STif it is needed in the calculations.

Ida sidha karya company is a family-owned company located on the island of bali in indonesia. the company produces a handcrafted balinese musical instrument called a gamelan that is similar to a xylophone. the gamelans are sold for $860. selected data for the company’s operations last year follow: units in beginning inventory 0 units produced 320 units sold 285 units in ending inventory 35 variable costs per unit: direct materials $ 135 direct labor $ 355 variable manufacturing overhead $ 30 variable selling and administrative $ 15 fixed costs: fixed manufacturing overhead $ 64,000 fixed selling and administrative $ 27,000 the absorption costing income statement prepared by the company’s accountant for last year appears below: sales $ 245,100 cost of goods sold 205,200 gross margin 39,900 selling and administrative expense 31,275 net operating income $ 8,625 required: 1. under absorption costing, how much fixed manufacturing overhead cost is included in the company's inventory at the end of last year? 2. prepare an income statement for last year using variable costing. what is the amount of the difference in net operating income between the two costing methods?

When an interest-bearing note comes due and is uncollectible, the journal entry includes debitingaccounts receivable and crediting notes receivable and interest revenue.accounts receivable and crediting interest revenue.notes receivable and crediting accounts receivable and interest revenue.notes receivable and crediting accounts receivable.

Consider an economy where government expenditures are 10 and total tax revenues are 10. the supply of labor is fixed at 125 and the supply of capital is fixed at 8. the economy is described by the following equations. y k to the power of 1 divided by 3 end exponent l to the power of 2 divided by 3 end exponent c 2.5 + 0.75 ( y - t ) i 10 - 0.5 r the level of private savings is