Answer:
I) The difference between the option's price and the value it would have if it were expiring immediately
Explanation:
Time value in options trading simply refers to the part of an option's premium (cost or price) which is attributed to the amount of the time remaining until expiration.
An addition of the option's time value and intrinsic value equals the total premium of an option.
Therefore, we can mathematically state that:
Time Value = Option Premuim(Price) - Intrinsic Value.
The Option Premuim is an amount of money known as the price or cost.
In an exchange for the right granted by the option, an option buyer pays for the premium to an option seller.
Generally, it is seen that the more time that remains until the expiration, the greater the time value of the option. This happens as a result of investors willing to pay a higher premium for more time since the longer time taken to execute contract will be profitable due to a favorable move in the underlying asset.
Also, the lesser time remaining on an option will result in lesser willingness of investors to pay because the probability for profitability is slim.
Answer:
$11,895,000
Explanation:
Expected annual earnings before tax = $21,000,000
Debt issue = $30,000,000
Interest rate = 9%
Annual Interest expenses = $30,000,000 × 9%
= $2,700,000
EBT = EBIT - Interest expenses
= $21,000,000 - $2,700,000
= $18,300,000
Net income = $18,300,000 × (1 - 35%)
= $11,895,000
Cash flows available to equity holders after recapitalization will be $11,895,000.
The correct answer to your question is:
Diagnosis Using the PESTEL Framework
Oct 13........................No Journal Entry Required
Oct 17. Cash..........................................DR $107
To Accounts Receivable........................................ $107
(Being cash received by Accounts Receivable)
Oct 22. Inventory....................................DR $1145
To Accounts Payables.......................................... $1145
(Being Purchases made of Chairs and Oil Supplies)
Oct Accounts Payable...........................DR $1145
To Cash............................................................ $1145
(Being Cash paid for purchases made)
they could give out less homework
give out weekly packets instead of a lot of daily work
only do necessary work
do more work in class
give homework every 2 weeks
or stop giving homework all together
