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Serggg [28]
3 years ago
9

A customer sells short 100 shares of ABC stock at $74 per share. The stock falls to $66, at which point the customer writes 1 AB

C Sept 65 Put at $3. The stock falls to $58 and the put is exercised. The customer's cost basis upon exercise of the put is:_________
Business
1 answer:
Gekata [30.6K]3 years ago
4 0

Answer: $62

Explanation:

The customer sold the stock short at $74 per share. Later on, the customer sold a Sept 65, Put at $3 on this stock. If the short put is exercised, the customer is obligated to buy the stock at $65 per share. Since the customer received $3 in premiums when the put was sold, the net cost to the customer is $62 per share for the stock (this is the cost basis in the stock for tax purposes). The stock that has been purchased is delivered to cover the short sale, closing the transaction. The customer's gain is: $74 sale proceeds - $62 cost basis = 12 point gain.

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Which of the following are amortizable organizational expenditures? Group of answer choices Professional fees to issue the corpo
satela [25.4K]

Answer:

The answers are:

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Explanation:

Organizational costs are the initial costs incurred when creating a company. They usually include legal and registration fees, promotions, and commissions paid.

After 10/22/2004, organizational cost up to $5,000 can be deducted as an expense. The remaining organizational costs can be amortized over fifteen years.

5 0
3 years ago
The total factory overhead for Norton Company is budgeted for the year at $300,000, divided into three activities: assembly, $20
kogti [31]

Answer:

b. $294 per setup

Explanation:

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Using this formula

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8 0
3 years ago
In the two-period dynamic monopoly, if the monopolist succeeds in selling a sufficiently high quantity in the first period,A)the
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Answer:

D)the second-period demand curve will shift substantially to the right.

Explanation:

If monopolist succeeds in selling a sufficiently high quantity in the first period, then in the second period it will further increase and will shift the demand curve to right hand.

3 0
3 years ago
The activities of the federal reserve board have the most direct influence on.
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Answer:

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7 0
1 year ago
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Shalnov [3]

Answer:

$40,500.

Explanation:

Calculation for Koch's adjusted basis in machine 2 after the exchange

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6 0
2 years ago
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