Answer:
[C] Strike price minus the premium
Explanation:
A put buyer refers to the one who purchases a right (and not the obligation) to sell(put) the underlying asset at a pre determined strike price/exercise price at a future date.
A put buyer is under no obligation to exercise his right of selling the underlying asset. He will exercise his right only when his strike price is greater than the current market price upon expiry of the contract.
Put Buyer's profit is expressed as;
= Strike price - Option premium paid - Current market price upon expiry
Thus, his NET sales proceeds are equal to his Strike Price as reduced by Option premium paid.
<span>b. debit interest receivable for $500 and credit interest revenue for $500
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Answer
B. Cover Letter
Explanation
It is a single-page introductory document prepared for the recruiting agent which gives a glimpse of the potential candidate to the recruiter. It gives an highlight of the candidate’s overall strengths and the potentials that present him/her to the position as a great fit for the company. The cover letter typically helps the candidate to stand out from the rest of the recruits and aims at engaging the employer before going through the resume of the candidate.
Answer: d. 2.27
Explanation:
Asset Turnover = Total sales / Average Assets
Last years turnover ratio was 2.0 so assume Sales were $20 and Assets were $10 which would give the turnover of 2.0
The new turnover would be;
= (20 * 1.25)/(10 * 1.1)
= 25/11
= 2.27
The journal entry is as follows
Unearned ticket revenue Dr $33,700
To Ticket revenue $33,700
(Being the unearned ticked revenue is recorded)
The computation is shown below:
= Number of seasons sold × Price of six events ÷ number of events held
= 3,370 × $60 ÷ 6
= 3,370 × $10
= $33,700
So we debited the unearned ticket revenue and credited the ticket revenue
