All sources of income is also known as which of the following

The price of a stock on February 1 is $84. A trader buys 200 put options on the stock with a strike price of $90 when the option

Andrews [41]

Answer:

The net loss of the trader amounts to $1,000, which means the correct option is A

Explanation:

The payoff is computed as:

Payoff = Strike price - Option's Stock price

where

Strike price is $90

Option's Stock Price is $85

Putting the values above:

Payoff = $90 - $85

= $5 per option

The trader bought 200 options, so the payoff would be:

Payoff = Options × Price per option

= 200 × $5

= $1,000

And the option cost would be:

Option cost = Options × Option Price

= 200 × $10

= $2,000

So, there computing net loss or gain as:

Net loss or gain = Payoff - Option cost

= $1,000 - $2,000

= $1,000 ( net loss)

Therefore, the correct option is A

7 0

3 years ago

The following information pertains to Blossom Company.

Dimas [21]

Answer:

A. Adjusted cash balance per bank $13,545

Adjusted cash balance per books $13,545

B. July 31

Dr Cash $2,520

Cr Accounts Receivable $2,520

July 31

Dr Bank service charge $63

Cr Cash $63

Explanation:

A. Preparation of a bank reconciliation at July 31, 2010

PHAROAH COMPANY

Bank Reconciliation

31-Jul-10

Cash Balance per bank statement $10,962

Add: Deposit in transit $4,473

$15,435

Less: Outstanding checks $1,890

Adjusted cash balance per bank $13,545

Cash balance per books $11,088

Add: Electronic fund transfer received $2,520

$13,608

less; Bank service charge $63

Adjusted cash balance per books $13,545

B. Preparation of the adjusting entries at July 31 on the books of Sunland Company.

July 31

Dr Cash $2,520

Cr Accounts Receivable $2,520

(To record electronic fund transfer received by bank)

July 31

Dr Bank service charge $63

Cr Cash $63

(To record bank service charges )

4 0

3 years ago

On February 1st, your accrual based company incurs $500.00 for services. On February 25th, your company pays $300.00 towards the

Zigmanuir [339]

Debit Credit

Feb 1
Services 500
Accounts Payable 500

Feb 25
Accounts Payable 300
Cash 300

March 5
Accounts Payable 200
Cash 200

The entries made in March 5th zeroed out the Accounts Payable on the Services bought on account last February 1st.

3 0

3 years ago

According to your text, sales promotions such as free samples and point-of-purchase displays are designed to build.

sukhopar [10]

According to your text, sales promotions such as free smples and point-of-purchase displays are designed to build. are called "Short-Term sales."

<h3>What is short term sales?</h3>

An property or stock that the seller doesn't own is sold in a short sale. The typical transaction involves an investor selling borrowed securities in expectation of a decrease in price; the seller is then obligated to deliver the same number of shares at a later date. A seller, on the other hand, holds a long position in the stock or asset.

Some characteristics of short term sales are-

A stock that its an investor believes will lose value in the near future is sold short.
A trader borrows shares on margin for a set length of time to complete a short sale, selling the stock when the price is attained or the period of time has passed.
Because short sells restrict gains while amplifying losses, they are regarded as dangerous trading techniques. Additionally, they come with regulatory hazards.
To be successful, short sales need to be timed almost perfectly.

To know more about short-term investment, here

brainly.com/question/7905571

#SPJ4

5 0

2 years ago

On January 1, 2016, Dreamworld Co. began construction of a new warehouse. The building was finished and ready for use on Septemb

Akimi4 [234]

Answer:

$54,000

Explanation:

Average accumulated expenditure can be determined by calculating the weighted average expenditure of each bond based on the numbers of month each bond is outstanding.

2016

As per given data

January 1, 2016 $300,000

September 1, 2016 $450,000

December 31, 2016 $450,000

Expenditures

As the bonds have different outstanding periods in the year, so we have to calculate the weighted average expenditure based on the numbers of months each bond outstanding within 2016.

January 1, 2016 $300,000 x 12/12 x 12% = $36,000

September 1, 2016 $450,000 x 4/12 x 12% = $18,000

December 31, 2016 $450,000 x 0/12 x 12% = <u>$0 </u>

Total Expenditure <u>$54,000 </u>

3 0

3 years ago