You hedged your corn purchase by buying and then selling two corn calls. The total price you paid was $0.15/bushel below the current cash price. The commission is $100 for the calls traded. What are your net savings compared to the cash price?

Q: Use the savings plan formula to answer the following question. You put $400 per month in an…

A: The time value of money is a financial concept that refers to the idea that money today is worth…

Q: You plan to invest $10,000 for 180 days. Your bank offers a rate of 2.60% on 90-day GICS and 2.85%…

A: We have in The Question, Principal = $10,000 Period = 180 days OPTION-1 90 Days GIC Interest Rate =…

Q: You won a raffle while you were down the shore with friends. For your prize, you can choose among…

A: Given the following information: Future value: $75,000 Discount rate: 8% Time period: 4 years

Q: suppose that you decide to borrow $15,000 for a new car. you can select one of the following loans,…

A: a.Loan ALoan Amount (pv) = $15,000Interest Rate (rate) = 5.9%Time Period = 3 YearsNumber of Payments…

Q: rate

A: Introduction: Simple interest can be defined as interest which is computed from the principal loan…

Q: Assume you have won a lottery prize of $5,000, which works out great since you want to buy a new…

A: Money has time value and value of money changes with time and is not same again in future this is…

Q: The RentWay company advertises itself as “Rent to own program”. For example, you can rent a $180 TV,…

A: The concept of time value of money means that the value of money today is worth more than its value…

Q: You want to buy a home.  You can borrow 95% of the purchase price.  Assuming you can make a down…

A: To calculate the price of home we will use the below  formula   Home price = Down payment/(1-Loan to…

Q: Suppose you purchase a bank accepted bill with a face value of $100,000. It has 120 days to maturity…

A: Bank accepted bills (BABs) don't have a traditional interest rate. Instead, the market sets an…

Q: Complete the following table. (Note: Round your answers to the nearest dollar.) Principal Finance…

A: The annual percentage rate is a conventional way to quantify the whole cost of borrowing in…

Q: You have saved $14000 for a down payment on a house. Your bank requires a minimum down payment of…

A: A down payment is a sum of money that the borrower contributes up ahead towards the cost of a loan…

Q: Suppose you know that based on the current economic settings, you can purchase 11% more goods next…

A: Interest rates can be of two types – real interest rate and nominal interest rate. The nominal…

Q: You have $100 to invest for 1 year at a rate of 10%. Bread sells for $2 today and that means you can…

A: Given information: Nominal rate is 10% Inflation rate is 4% Value of investment is $100 Current…

Q: If a person saves $62 a month by using coupons and doing comparison shopping, (a) what is the amount…

A: Future Value of Ordinary Annuity refers to the concept which determines the sum total of all the…

Q: Suppose that you want to take out a loan and that your local bank wants to charge you an annual real…

A: Compute the nominal interest rate: Nominal interest rate is calculated by using following formula:

Q: You are shopping and see an item that is normally priced for $900 on sale for 45% off. However, you…

A: Given, Normal price of the item = $900, Discount on sale of item 45%, Sale price = normal price-45%…

Q: A man invests his savings in two accounts, one paying 6 percent and the other paying 10 percent…

A: The question is based on the concept of Financial Management.

Q: You are comparing two annuities. Annuity A pays $115 at the end of each year for 5 years. Annuity B…

A: Time, value, and money refer to the money present today being more valuable than the money will…

Q: Calculate the monthly payment by table lookup and formula. (Answers will not be exact due to…

A: The purchase price of the car is $4255 The down payment is $95 The total number of the monthly…

Q: In order to purchase a brand new set of living room furniture, you take out a loan from the bank at…

A: Cash price is the present value of quarterly payment made at the of the quarter.

Q: You are considering investing in a security that will pay you 2,000 in 25 years. If the appropriate…

A: Number of years (n) = 25Future Value (FV) after 25 years = $2,000Discount rate (r) = 9% or 0.09We…

Q: Problem: Yuseff was able to sell a car whose suggested retail price is $1,2000.000. The vehicle will…

A: In this question the retail price is lower than the down payment which is not possible. So let’s…

Q: A savings and loan charges 2.075 points for a home buyer to obtain a loan of $255,000. To calculate…

A: A loan is a financial arrangement in which one or more people, companies, or other entities lend…

Q: The buyers paid $6,125 for a 1 point origination fee and a 1.5 discount point fee, what is the…

A: Origination fee is the amount paid on processing and approving of loan while discount point fee is…

Q: After examining the various personal loan rates available toy, you find the can borrow funds from an…

A: Individuals prefer to obtain the loan at the lowest possible cost. The lenders advertise the loan on…

Q: After examining the various personal loan rates available to​ you, you find that you can borrow…

A: APR (Annual Percentage Rate) is a standardized way of expressing the total cost of borrowing,…

Q: You want to buy a house for $250,000.  The bank requires a down payment of 25%.  What is the amount…

A: Given: House cost =$250000Down payment =25%

Q: You see a TV for $1899 and the sign says 30% off. You also have a coupon for 20% off the sale price…

A: The successive discount on stated % is different from a single discount %. A discount of 30% and 20%…