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2 years ago

ABC Corporation's stock is trading at $35. A client has purchased a 50 call. The option's current value is made up of

Business

1 answer:

grin007 [14]2 years ago

3 0

Answer: intrinsic value only.

Explanation:

Intrinsic value is the expected or measured value determined by fundamental analysis of a business, stock, currency or commodity. In this case the intrinsic value is 50 call.

Tangible and intangible variables are included. The true value is often referred to as intrinsic value which may or may not be the same as the current market value.

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Prepare journal entries to record each of the following sales transactions of EcoMart Merchandising. EcoMart uses a perpetual in

Rudik [331]

Answer:

Oct 1

Debit : Accounts Receivable $2,600

Debit : Cost of Sales $1,450

Credit : Sales Revenue $2,600

Credit : Merchandise $1,450

Oct 6

Debit : Sales Revenue $260

Debit : Merchandise $145

Credit : Accounts Receivable $260

Credit : Cost of Sales $145

Oct 9

Debit : Accounts Receivable $1, 250

Debit : Cost of Sales $1,450

Credit : Sales Revenue $1, 250

Credit : Merchandise $1,450

Oct 11

Debit : Cash $2,340

Credit : Accounts Payable $2,340

Explanation:

The perpetual method ensures that the cost of sales and inventory values are calculated after every transaction made.

Therefore, remember to show the cost of sale journal and the resulting decrease in inventory after every sale.

8 0

2 years ago

What is ivan's marginal benefit if he decides to stay open for six hours instead of five hours?

Delicious77 [7]

Ivan's marginal benefit if he decides to stay open for six hours instead of five hours is $20. The marginal benefit can be solved by subtracting the total revenue of the equivalent hours.

$550 (6 hours) - $530 (5 hours) = $20

4 0

2 years ago

Other things remaining equal, the law of demand says that higher prices will lead to a A. smaller quantity demanded and lower p

Yuri [45]

Answer:

The answer is A.

Explanation:

Other things remaining equal, the law of demand says that the higher the price, the lower the quantity demanded and the lower the price the higher the quantity demanded.

Suppose a good is being sold at $5 and 20 quantities are being demanded, if the price increases to $6, lesser of that goods should be demanded

7 0

3 years ago

Lagle Corporation has provided the following information: Cost per Unit Cost per Period Direct materials$5.25 Direct labor$3.90

Vikentia [17]

Answer:

$16,050

Explanation:

The computation of the total amount of the period cost is shown below:

= Sales commission per unit × number of units sold + Fixed selling and administrative expense + Variable administrative expense per unit × number of units sold

= $1.80 × 4,500 units + $6,600 + $0.30 × 4,500 units

= $8,100 + $6,600 + $1,350

= $16,050

7 0

3 years ago

PB4.

harkovskaia [24]

Answer:

The process cost summary is given below.

A-Total Material Cost = $22,500

B-Total Conversion costs = $95,625 (45,625+50,000)

C-Units transferred out = 40,000

D-Ending Inventory = 10,000

E-Equivalent units of material = 45,000

F-Equivalent units of conversion costs = 42,500

G-Equivalent cost per unit of material = $0.5 (A/E)

H-Equivalent cost per unit of conversion costs = $ 2.25 (B/F)

I-Equivalent cost per unit = $2.75 (G+H)

J-Cost of inventory transferred = $ 110,000 (I*C)

K-Cost Of Ending Inventory = $ 8,125 (H*(F-C) + (5000*0.5))

4 0

3 years ago