12 25. A "red flag" is not necessarily a reason to prohibit a business relationship but indicates a need todo further due diligence on the business partnerA multiple-choice question with one possible answer. (Required)1.O True2. False

A "red flag" is an indicator or warning sign that suggests a potential issue or risk in a business…

Answered: 25. A "red flag" is not necessarily a…

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

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D & R A1 3 - 4 Question 3. Stock Futures with Dividends Today is January 3. Your friend David has just bought a futures contract on a stock index, and the contract specifies one year to expiration. The current share price is $80, and the annually compounded interest rate is 10%. The stock will pay quarterly dividends of $2 during the next year, with dividends payments on the following dates: January 25 April 25 July 25 October 25 Assume that this is a non-leap year. Suppose that, instead of paying a quarterly dividend of $2, the stock index has an annual dividend yield of 10%. The continuously compounded interest rate is 10.52%. What is the price of the index futures on January 3? What is its value on February 17 when the index turns out to be $90?
Hmm.134.
Q.2 Mrs. Y is the CEO of the big advertisement company. Her job often consists of travelling around the world to promote the channel as well travelling, a normal day consists of waking at 6:30 am and immediately responding to various messages that have accumulated over the course at the night. She then goes to her office, where throughout the day she responds to other 400 or so messages from the clients around the world. If she’s lucky, she gets time to spend with her son, but then she back to work until she finally goes to bed around midnight. Says Y, "There are plenty of people who would love to have this job. They are knocking on the door all the time. So that's really motivating. Many individuals would balk at the prospect of a 60 hours or more workload with constant travelling and lesser time for anything in the world. Some individuals are craving for this kind of job. But the demands of such jobs are clearly not for everyone. Many quit jobs at very initial stage. However, clearly…
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25. A "red flag" is not necessarily a reason to prohibit a business relationship but indicates a need to do further due diligence on the business partner A multiple-choice question with one possible answer.(Required) 1.O True 2.O False