You have purchased one call option expiring in one year with a strike price of $40. the current price of the underlying is $30, the interest rate is zero, and the premium for the call option is $2.63.

(1) draw the payoff and p& l diagrams for the call option at expiration.
(2) what is the p& l on the option at expiration if the underlying is $57.50 (i. e. s, = 57.5)?

The following cost and inventory data are taken from the accounting records of mason company for the year just completed: costs incurred: direct labor cost $ 90,000 purchases of raw materials $ 134,000 manufacturing overhead $ 205,000 advertising expense $ 45,000 sales salaries $ 101,000 depreciation, office equipment $ 225,000 beginning of the year end of the year inventories: raw materials $ 8,100 $ 10,300 work in process $ 5,900 $ 21,000 finished goods $ 77,000 $ 25,800 required: 1. prepare a schedule of cost of goods manufactured. 2. prepare the cost of goods sold section of mason company’s income statement for the year.