Answer:
-$ 540
Explanation:
Put Option - provides right to sell share at exercise price on expiry.
As it is an Right not Obligation, Thus, buyer will exercise the right only if he is gaining at expiry and he will gain only if exercise price is higher than spot price at expiry
In this case Exercise Price ($ 35) is lower than the spot price ( $ 36.25) at expiry. Thus he will not execrise the option.
He will lose all what he spend in buying option that is $ 1.35 per share
Thus,
Net profit or loss on this investment = 4 Options * 100 Shares each * Loss of $ 1.35 per Share
Net profit or loss on this investment = 4 * 100 * (-1.35)
Net profit or loss on this investment = -$ 540
Answer:
The correct answer is a. Special revenue.
Explanation:
A special revenue fund is an account established by a government to raise money that must be used for a specific project. Special income funds provide an extra level of responsibility and transparency to taxpayers that their taxes will be used for a specific purpose.
Example: A city could establish a special income fund to pay the costs associated with stormwater management. The money from this fund could only be used for stormwater management expenses, such as street sweeping, sewer and ditch cleaning, system maintenance and a public awareness campaign. The city would have to publicly report where it raised the money from the special income fund and how it spent the budget of the special income fund.
Answer: Submit it to arbitration.
Explanation:
The court will submit the case to arbitration making the lawsuit pending till the outcome of arbitration.
Answer:
Option (B) is correct.
Explanation:
Given that,
Net income = 50,000
Preferred dividend = 2,000
Outstanding common stock:
= (40,000 × 2) + (10,000 × 6/12 × 2)
= 80,000 + 10,000
= 90,000
2016 basic earnings per share:
= (Net income - Preferred dividend) ÷ Outstanding common stock
= (50,000 - 2,000) ÷ 90,000
= 48,000 ÷ 90,000
= $0.53 per share
Therefore, the 2016 basic earnings per share is $0.53.
