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andriy [413]
2 years ago
14

Assume a pension fund purchased stock at $53. Call options at a $50 exercise price presently have a $4 premium per share. The pe

nsion fund sells a call option on the stock it owns. If the call option is exercised when the price of the stock is $56, what is the gain or loss per share to the pension fund (including its gain from holding the stock as well?
a. $4 gain
b. $6 loss
c. $2 loss
d. $1 gain
e. $0
Business
1 answer:
vitfil [10]2 years ago
3 0

Answer:

d.$1 gain

Explanation:

Calculation for what is the gain or loss per share to the pension fund

Gain per share = Stock Purchased- Exercise price + Premium per share

Let plug in the formula

Gain per share = $53-$50 + $4

Gain per share=$53-$54

Gain per share= $1

Therefore the gain or loss per share to the pension fund will be $1 gain

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Explanation:

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Indicate whether each of the following is a final​ good, an intermediate​ good, or neither.
butalik [34]

Answer:

  • 1. Coffee beans purchased by a coffee shop   --  intermediate good.
  • 2. One share of Google stock  --   neither.
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  • 4. A new home purchased by a family  --  final good.

Explanation:

  • An intermediate good is a semi-finished good that is used as the inputs of the production and makes them sell and buy the goods. While the final good is one that is finished in processing and is ready to be consumed and those goods that are present in a stocks firm are not used and neither is been developed are google stocks.
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Prepare adjusting journal entries, as needed, for the following items. (If no entry is required for a transaction/event, select
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Answer:

Explanation:

The adjusting entries are shown below:

1. Supplies expense A/c Dr $370

       To supplies A/c                          $370

(Being supplies account is adjusted)

The supplies expense is computed by

= Supplies balance - supplies on hand

= $570 - $200

= $370

2. Insurance expense A/c Dr $190

         To Prepaid Insurance                  $190

(Being prepaid insurance is adjusted)

3. Salaries expense A/c $1,280

          To Salaries payable A/c        $1,280

(Being salary is adjusted)

The salaries expense is computed by

= Total five days × number of days ÷ total number of days

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= $1,280

4. Electricity expense A/c Dr $270

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7 0
3 years ago
Alliance Company's budgets production of 39,000 units in January and 43,000 units in the February. Each finished unit requires 4
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Answer:

The correct answer is 160,800 pounds.

Explanation:

According to the scenario, the computation of the given data are as follows:

Budget production in Jan = 39,000 units

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Beginning inventory = 46,800 pounds

Ending inventory = (43,000 × 4 pounds ) × 30% = 51,600 pounds

So, Budgeted material needed = Total raw material + Ending inventory - Beginning inventory

= 156,000 + 51,600 - 46,800

= 160,800 pounds

8 0
3 years ago
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