C
Banks do not really have any goods to sell, they’re in the business of holding money for others and loaning that money out to others, normally with interest. It is the interest off of loans that normally create income and allow the bank to have a positive cash flow.
your correct answers is 114
Answer:
To create the collar, the customer would: <u>buy 1 PHLX 59 SF Call and sell 1 PHLX 61 SF Call.</u>
Explanation:
The meaning of a "collar" is that a put is bought at a strike price that is less than the price of the underlying instrument (this implies that a floor has been put on the price of the instrument); and that a call is disposed at a strike price which is higher than the price of the underlying instrument (this indicates that a ceiling above which the instrument will be called away has been created).
When a collar is put on the price, it indicates that the customer is majorly giving a guarantee for the underlying instrument's minimum and maximum price.
This should make the net cost of the collar to be close to zero due to the fact that the two contracts are "out the money" and also because the premium paid to buy the put is offset by the premium received when the call was sold.
Therefore, since customer in the question wishes to place a collar on the position using PHLX SF FLEX options, he would <u>buy 1 PHLX 59 SF Call and sell 1 PHLX 61 SF Call</u> to create the collar.
Answer:
The Journal entry for each of the transaction is as follows:
(i) On June 1,
Cash A/c Dr. $5,000
To Oleg Thorn's capital A/c $5,000
(To record the capital invested)
(ii) On June 2,
Equipment A/c Dr. $3,600
To accounts payable $3,600
(To record the purchase of equipment on account)
(iii) On June 3,
Rent Expense A/c Dr. $800
To cash A/c $800
(To record the rent paid)
(iv) On June 12,
Accounts receivable - K. Johnsen A/c Dr. $400
To service revenue $400
(To record the service revenue)
The accounts to be debited and credited for each transaction is as follows:
(i) On June 1,
Debit = Cash and Credit = Oleg Thorn's capital
(ii) On June 2,
Debit = Equipment and Credit = accounts payable
(iii) On June 3,
Debit = Rent Expense and Credit = cash
(iv) On June 12,
Debit = Accounts receivable - K. Johnsen and Credit = service revenue
Answer:
d. banks and mutual funds.
Explanation:
Financial intermediaries are bodies or individuals that connect surplus and deficit agents. These institutions serve as middlemen among diverse parties in financial transactions. These include banks, mutual funds, pension funds, building societies etc. Banks and mutual funds are two of the economy's most important financial intermediaries.
