To solve the following, we should use the following method
For us to be able to determine the price base on put call parity
The formula for put call parity is gives as c + k = f +p, meaning the call price plus the strike price of both options is equal to the futures price plus the put price.
Since there is not enough room here, I used an excel spreadsheet to answer the question.
Assets increased by $8,440
Stockholders' equity increased by $8,440
Revenues increased by $8,440
Cash flows increased by $6,040
Explanation:
The accounting equation: Assets = Liabilities + Stockholders' Equity, basically represents how the double entry accounting system works. One side (assets) must always be equal to the other side (liabilities + stockholders' equity).