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sweet [91]
2 years ago
14

If a call option has a $10 strike price, and the underlying stock is trading at $11, then the option is considered: a. in the mo

ney. b. at the money. c. out of the money. d. worthless.
Business
1 answer:
kogti [31]2 years ago
7 0

In the money

Put option holders have the choice, but not the duty, to sell shares of the underlying security by a specific date and at a certain price.

When the strike price of a put option is more than the market value of the underlying securities, the option is said to be in the money.
Put options are frequently used by investors as downside protection to limit or stop a value decline.
If the price of the underlying asset increases, puts can offer investors limited risk exposure to the short market.
The time value of a put option, which is the additional premium an investor will pay above the option's intrinsic value, can also have an impact on the option's value.
To learn more about In the money please visit -
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Scott Company has 5 sales employees, each of whom earns $16,000 per month and is paid on the last working day of the month. Each
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Answer:

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January 31:

Debit Payroll $80,000

Credit Salaries Payable $57,200

Credit Payroll Taxes Payable $22,800

To record the salaries and taxes payable.

Debit Salaries Payable $57,200

Debit Payroll Taxes Payable $22,800

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To record the payment of the salaries and taxes.

Explanation:

a) Data and Calculations:

Number of sales employees = 5

Salary per month = $16,000 each

Withholding taxes:

FICA social security taxes of 6.2% = $992

Medicare taxes  1.45% = $232

Federal income tax = 16% = $2,560

Monthly Medical Insurance = $440

FUTA = 0.8% of the first $7,000 = $56

SUTA = 4.0% of the first $7,000 = $280

Total withholding tax deductions = $4,560

Payroll total ($16,000 * 5) = $80,000

Withholding taxes for each:

FICA social security taxes of 6.2% = $992 * 5 - $4,960

Medicare taxes  1.45% = $232 * 5 - $1,160

Federal income tax = 16% = $2,560 * 5 - $12,800

Monthly Medical Insurance = $440 * 5 - $2,200

FUTA = 0.8% of the first $7,000 = $56 * 5 - $280

SUTA = 4.0% of the first $7,000 = $280 * 5 - $1,400

Total withholding tax deductions = $4,560 * 5 = $22,800

Net pay = $57,200

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