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4 years ago

American call and put premiums:__________

Business

1 answer:

shtirl [24]4 years ago

4 0

Answer:

B) Should be at least as large as their intrinsic value.

Explanation:

American call and put option premiums are one of the options contracts, which allows investors to buy or sell the stock options before the maturity date. It is not referred to as the option related to geographical location, however, it is only applied to the rights of execution.

There are four variables to specify the contract:-

Underlying asset.
Premium
Strike price.
Maturity data.

Intrinsic value is the difference between underlying assets and strike price, which can not be negative and the premium is the price paid during buying and selling of options. Therefore, American call and put premiums should be at least as large as their intrinsic value.

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3 years ago

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Answer:

a defensive open market sale

Explanation:

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4 years ago

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4 years ago

Indigo Corporation had the following tax information.

Andrei [34K]

Answer:

Explanation:

Given that:

Indigo Corporation had the following tax information.

Year Taxable Income Tax Rate Taxes Paid

2015 $294,000 35% $102,900

2016 332,000 30% 99,600

2017 399,000 30% 119,700

In 2018, Indigo suffered a net operating loss of $487,000, which it elected to carry back. The 2018 enacted tax rate is 26%.

The objective is to prepare the Indigo's entry to record the effect of the loss carryback.

The Income Tax Refund Receivable = Taxable income(2018) × Tax rate(2018) + ( net operating loss - Taxable income(2018) ) × Tax rate(2018)

(332000 × 30%)+(476000-332000) × 30%

The Income Tax Refund Receivable = (332000 × 0.30)+(476000-332000) × 0.30

The Income Tax Refund Receivable = 99600 + 144000× 0.30

The Income Tax Refund Receivable = 99600 + 43200

The Income Tax Refund Receivable = 142800

Therefore, Indigo Corporation ENtry can be prepared as follows:

Account titles Debit Credit

Income Tax Refund Receivable 142800

Benefit Due to Loss Carryback 142800

To record the effect of the loss carryback

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3 years ago

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2 years ago