Answer:
$1,000
Explanation:
Whenever an option is provided to an employee for stock purchase then the cost of such option is the price at which the issue is offered.
Accordingly the actual amount paid to acquire the issue is the cost to acquire such issue.
Thus, the issue granted = 10 stock options
Each option has 10 shares.
Thus, total number of shares offered = 10
10 =100
The strike price for issue = $10 for each share.
Actual cost = Strike Price
Number of shares = $10
100 = $1,000.
Answer:
$1.70
Explanation:
Given that,
Current stock price= $40
Strike price= $39
After a period of one month, two states will be achievable.
- First state
Stock price=$42
Option value= 42-39
=$3
- Second state
Stock price= $38
Option value= 0
Upmove size of first state is
U= 42/40 =1.05
Downmove size of the second state is
D=38/40=0.95
The values given for the upside probability is given as:
Rf= 0.08
t= 1/12
πu = 0.567
The downside probability is equal to:
= 1 - 0.567
= 0.433
Therefore, the present value of option is:
(0.567 × 3) + (0.43 × 0) / e^0.08 × 1/12
= 1.70
Thus, the value of a one-month European call option is $1.70
Answer:
($66,000)
Explanation:
Financing activities: It measures those transactions which are related to the long term liabilities and stockholder equity. The issuance of shares is an inflow of cash whereas redemption, the retirement of bond and dividend paid is a cash outflow in which the cash balance is reduced.
Since in the given question, the bond is retired for $66,000 cash which represents the cash outflow for $66,000 only as it includes the transaction of cash
Answer:
lack of attention and contempt
Explanation:
Probably Miguel is not interested in Pilar speech or is trying to be difficult person to approach.