1. Suppose there is a risk premium of $0.50. The spot price is $20 and the futures price is $22. What is the expected spot price at expiration? show your work
2. Define a horizontal merger. How can a horizontal merger produce synergy benefits? (horizontal merger and synergy)
3. Name two reasons in FASB's rationale for adopting FAS 141, 141R, and 142, and dropping pooling of interest accounting?