Business, 16.04.2020 16:05 lezapancakes13
On January 2, 2014, Joes company purchases a call option for $300 on Merchant common stock. The call option gives Joes the option to buy 1,000 shares of Merchant at a strike price of $50 per share. The market price of a Merchant share is $50 on January 2, 2014 (the intrinsic value is therefore $0). On March 31, 2014, the market price for Merchant stock is $53 per share, and the time value of the option is $200.
Instructions:
(a) Prepare the journal entry to record the purchase of the call option on January 2, 2014.
(b) Prepare the journal entry(ies) to recognize the change in the fair value of the call option as of March 31, 2014.
(c) What was the effect on net income of entering into the derivative transaction for the period January 2 to March 31, 2014?
Answers: 3
Business, 22.06.2019 09:30
Oliver's company is planning the launch of their hybrid cars. the company has included "never-before-seen" product benefits in the hybrid cars. which type of advertising should oliver's company use for the new cars?
Answers: 1
Business, 23.06.2019 00:00
Which example would the government consider as intellectual property? a. product design that contains a hologram of the logo of the company b. a copy of a famous artist’s painting in a new medium c. a plant species discovered in the united states for the first time d. a method of production that is common to an entire industry e. a discount structure offered to the customer at a store
Answers: 3
Business, 23.06.2019 08:30
Which of the following scenarios will probably cause prices to drop
Answers: 3
Business, 23.06.2019 13:20
Which type of tax is imposed on specific goods and services at the time of purchase? question 12 options: estate excise general sales value-added
Answers: 1
On January 2, 2014, Joes company purchases a call option for $300 on Merchant common stock. The call...
Mathematics, 14.10.2019 06:30
Social Studies, 14.10.2019 06:30
History, 14.10.2019 06:30
English, 14.10.2019 06:30
Mathematics, 14.10.2019 06:30
Mathematics, 14.10.2019 06:30
English, 14.10.2019 06:30
English, 14.10.2019 06:30