Answer:
d. If Cazden's stock price rose by $5, the exercise value of the options with $25 strike price would also increase by $5.
Explanation:
A call option confers a right, not an obligation upon the call buyer to buy a security at a pre determined price, known as exercise price or strike price at a future date.
A call buyer would exercise his right only in the scenarios wherein the strike price is lesser than the current market price on maturity.
Profit of a call buyer is given by = CMP as on expiry - Exercise/Strike price - Option premium paid
wherein CMP= Current Market Price
A call option is "in the money" when it's strike price is less than it's current market price. In the given case, it means if the CMP today represents CMP upon expiry, call buyer would exercise his right and his gain would be $5 i.e $30 - $25.
Since the $25 exercise option is "in the money", an increase in stock price by $5 will also increase the strike price by $5.
Bondholders regularly receive interest income at a preset interest rate, or coupon rate, for a specified period of time. This is the bond’s maturity period.<span> Holders can also sell the bonds in the bond market at their current market price.
So the Answer is BONDS
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Standard deviation is an amount of the dispersion of a group of data from its mean. It is computed as the square root of variance by distinguishing the variation amid each data point relative to the mean. If the data points are distant from the mean, there is greater deviation within the data set. But since not all are given in this problem Dot can use some previous knowledge about the population, undertake a pilot study or approximation the range (7), and divide by 6.
D.Accounts Receivable are also called trade receivables.
This is because the account receivables were earned by practicing your trade or doing your business.
Answer:
The Journal entry is as follows:
On June 1, 2022
Cash A/c Dr. $316,200
To Bonds payable A/c $310,000
To Premium on Bonds Payable A/c $6,200
(To record the sale of these bonds on June 1, 2022)
Workings:
cash = $310,000 × (102 ÷ 100)
= $310,000 × 1.02
= $316,200
Premium on Bonds Payable = $316,200 - $310,000
= $6,200
