Suppose that a hedge fund charges a fee of 0.5% of assets under management and a 15% performance fee on all gains in excess of 25%. If an investor puts $1,900,000 into the fund on January 1 and the fund earns a 46% return (before fees), compute the assets under management fee. Assume the 0.5% management fee is applied to the end-of-year investment balance.

Highfield Securities buys a $100,000 par value Treasury bond futures contract. There is an initial margin requirement of $3,475 and a margin maintenance requirement of $1,575. Assume Maxwell’s investment is for 6 months. To have a 100 percent annualized return on the initial $3,475 margin, by what percent of par value must the bond increase? Round your answer to the nearest basis point (i.e. xx.xx%)

Detroit Imports has a dividend payout ratio of 39 percent and annual dividends of $3.89 per share. What is the retention ratio?

A stock with a current market price of $44 and a strike price of $56 has an associated put option priced at $17.50. What is the time value of this put? Round your answer to the nearest penny.

Assume an investor writes a call option for 100 shares at a strike price of 70 for a premium of 4.92. This is a naked option. What would the gain or loss be if the stock closed at $78.05?

Suppose an investor sells Lach Farming’s stock short, but wants to limit her potential losses. How can the investor use stock options to limit her losses?

A farmer sells futures contracts at a price of $2.42 per bushel. The spot price of corn is $2.24 at contract expiration. The farmer harvested 12,100 bushels of corn and sold futures contracts on 10,000 bushels of corn. Ignoring the transaction costs, how much did the farmer improve his cash flow by hedging sales with the futures contracts?

Maastricht, Inc. has paid a dividend of $6 per month and has done so for the last 50 years. Assuming the discount rate of 18%, find the price of this stock

The bookkeeper of Fire Steel, Inc. recorded a $1501 check as $15,010 in payment of the current month’s rent. Which of the following journal entries is needed to adjust for this error in the books of the company?

Which of the following amounts would be reported as Merchandise Inventory on the balance sheet of a company if the cost of an item is $130 and the current replacement cost is $90?