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bezimeni [28]
3 years ago
11

Your client holds 1 listed XYZ August 50 call. A cash dividend of $2.50 per share is declared. On the ex-date, the terms of the

call are: (A) Exercise Price: $47.50, Number of Underlying Shares per Contract of XYZ: 102 (B) Exercise Price:$50.00, Number of Underlying Shares per Contract of XYZ: 100 (C) Exercise Price: $52.50, Number of Underlying Shares per Contract of XYZ: 97 (D) Exercise Price: $52.50, Number of Underlying Shares per Contract of XYZ: 102
Business
1 answer:
erik [133]3 years ago
3 0

Answer:

(B) Exercise Price:$50.00, Number of Underlying Shares per Contract of XYZ: 100

Explanation:

The declaration of the dividends will not affect the exercise price of the call, it will still be $50 per stock. Also, the number of stocks included in the call will not change because a cash dividend is declared, they will still be 100 stocks included in the call contract. The cash dividend affects the market price of the stock, but not the call or put options.

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Feb. 2 Wrote a $350 check to establish a petty cash fund. 5 Purchased paper for the copier for $14.55 that is immediately used.
Nataly [62]

Answer:(1) Dr: petty cash $350, Cr: Cash $350, (2) Total delivery expense $16, Total Milleage expense $71, Total postage expense $65.55, Total merchandise inventory( Transportation -in) $42.4, Total office supplies $81.32, Petty Cash Balance $204.67 (3) a) Dr : Expenses $326.29, Cr : Cash $326.39 (b) Dr: petty cash $490, Cr: Cash $490

Explanation:

Journal entry to establish the petty cash fund

Dr : petty cash $350

Cr: : Cash $350

Journal entry to record the reimbursement

Dr : Expenses $326.39

Cr: Cash $326.39

Journal entry to record the increase in fund amount

Dr:petty cash $490

Cr: cash $490

Total delivery expenses $16

Total mileage expenses $71

Total postage expenses $65.55

Total merchandise inventory (Transportation -in) $42.4

Total office supplies $81.32

Amount received for reimbursement $326.39

Petty Cash Balance $204.67

7 0
3 years ago
Which of these statements best represents the law of supply? select one:
sweet [91]

c. when the price of a good decreases, sellers produce less of the good.

According to the law of supply, an increase in price results in an increase in quantity supplied. This means that there is a direct relationship between price and quantity:  Thus, when price of a good falls, sellers produce less


8 0
3 years ago
Can someone please help me? Why are subordinate bonds and preferred stock more risky than long-term senior bonds?
MA_775_DIABLO [31]

Answer:

Subordinated bonds, also known as subordinated debts, is an unsecured loan or bond that ranks below other, more senior loans or securities with the respect to claims on assets or earnings. Generally, subordinated bonds are debts that can be added to preferred stocks. Preferred stocks can be viewed as long- term investments, but are generally more risky because they are more sensitive to interest- rate risk if the rates rise. If they rise, then the price of the preferred stocks may fall and can fall lower than the price of short- term bonds. The difference between subordinated bonds and senior bonds is the priority in which the debt claims are paid. If one has to file bankruptcy or face liquidation, senior debts is paid back before the subordinate debt. Once the senior debt is completely paid back, then the subordinate debt starts being repaid.

Explanation:

7 0
3 years ago
Read 2 more answers
Havermill Co. establishes a $270 petty cash fund on September 1. On September 30, the fund is replenished. The accumulated recei
stiv31 [10]

Answer:

Hi there!

C. Debit Miscellaneous Expense $270; credit Cash $270.

Explanation:

At the time of the reimbursement from the petty cash, the vouchers for the money used are presented and these must be charged to the different expenses incurred.

In October 1, the journal entry for the petty cash increase of $54 will be:

Debit Petty Cash $54; credit cash $54.

8 0
2 years ago
Ashley opened an all-you-can-eat buffet restaurant. the price per-person was based on what ashley believed an average restaurant
Rudiy27
<span>In the insurance market, this is referred to as adverse selection. Adverse selection is simply just a situation where the seller has information that the buyer does not have about an aspect of the product or its quality, or vice versa. When it comes to insurance, adverse selection is the likelihood of those who preform dangerous jobs or are high risk to get life insurance.</span>
7 0
2 years ago
Read 2 more answers
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