Consider a buyer of crude oil who wants to hedge its purchase price in October. The firm buys December futures contracts on oil and will unwind the hedge in October. The firm
will buy the same type of oil and in the same delivery location as specified in the futures
contract. Which of the following is a relevant source of basis risk?
1. Changes in oil prices.
2. Changes in the storage cost of oil.
3. Changes in the riskless interest rate.
4. Changes in the convenience yield for oil.

Seattle bank’s start-up division establishes new branch banks. each branch opens with three tellers. total teller cost per branch is $96,000 per year. the three tellers combined can process up to 90,000 customer transactions per year. if a branch does not attain a volume of at least 60,000 transactions during its first year of operations, it is closed. if the demand for services exceeds 90,000 transactions, an additional teller is hired and the branch is transferred from the start-up division to regular operations. required what is the relevant range of activity for new branch banks

The questions of economics address which of the following ? check all that apply

Randall's, inc. has 20,000 shares of stock outstanding with a par value of $1.00 per share. the market value is $12 per share. the balance sheet shows $42,000 in the capital in excess of par account, $20,000 in the common stock account, and $50,500 in the retained earnings account. the firm just announced a 5 percent (small) stock dividend. what will the balance in the retained earnings account be after the dividend?