In January 2021 you purchased 2,000 shares of BZA Ltd for $30.00 per share. Concerned that the market will turn bearish, you decide to buy 20 put options on the company’s shares with each contract written on 100 shares at an exercise (or strike) price of $30.00 expiring in July 2021 for a premium of $1.00 per share. -If at expiration the company’s share price is $28.00 calculate the total profit or loss on your hedged position

Q: Warren Co. purchased a put option on Echo common shares on January 7, 2020, for $360. The put option…

A: GIVEN :  7 Jan 2020 Purchases of put option                $ 360 No of put option shares…

Q: On January 1,2020, V Co. issued 100 share options to each of its 15 executive officers. The options…

A: Compensation expense = Number of employees × Number of options granted × Fair value ×Expired…

Q: On May 1, 2021, Roger Rabbit Company adopted a stock-option plan that granted options to key…

A: Journal entries refers to recording of the business transaction into the books or day book of the…

Q: On January 1,2020 , Red Day Company granted 80 share options to each of its 400 employees for the…

A: If market related conditions are failed , we will continue to record expense , i.e. we will not…

Q: On January 1, 2016, Adams-Meneke Corporation granted 25 million incentive stock options to division…

A: 1. Compensation cost of options = Number of stock options x Fair value of stock options =…

Q: On July 1, 2020, Paulina, Inc. granted share options to executives, which options allow them to…

A: Total expected compensation expense at the end of 2020 = (market price of share - par value  per…

Q: On January 1, 2020, Green Company had issued executive share options permitting executives to buy…

A: In case of share options, the company issues the options has to compute the total estimated…

Q: On January 2, 2020, Jones Company purchases a call option for $300 on Merchant common stock. The…

A: A ) Journal entry:

Q: Under its executive stock option plan, National Corporation granted 30 million options on January 1,…

A:

Q: 1. Determine the total compensation cost pertaining to the options on January 1, 2021. 2. Prepare…

A: Financial accounting: Financial accounting is the process of recording, summarizing, and reporting…

Q: On November 1, 2020, DaBaby Company adopted a stock-option plan that granted options to key…

A: Employees Stock Option: When a company grants an employee stock option (ESO), it is referring to a…

Q: Heidi Software Corporation provides a variety of share-based compensation plans to its employees.…

A: Total compensation cost = Stock options * Fair value per option

Q: On January 1, Year 1, Spaghetti Corp. granted 100 share options each to 500 employees, conditional…

A: S.NO Particulars  YEAR 1 YYEAR 2  YEAR 3 1. Total No. of employees  500 500 500 2. Employees…

Q: On January 1, 2019, Roswall Corporation’s common stock is selling for $55 per share. On this date,…

A:

Q: On January 1, 2020, Marie Company granted 200 share options to 300 employees, conditional upon the…

A: Share option means where the employees is given share free of cost or at very nominal value if the…

Q: On January 1,2019, an entity granted 100 share options each to 500 employees, conditional upon…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: the financial year to June 30, 2021, HiFi Ltd issued options for 400,00 riod, the average fair value…

A: BEPS To calculate Basic earnings per share, divide the net profit or loss attributable to equity…

Q: On January 1, 2018, Adams-Meneke Corporation granted 25 million incentive stock options to division…

A: 1) Total Compensation cost on January 1, 2018 = No. of Stock options*Fair Value of Option Total…

Q: On January 1, 2020, ABC Company granted share options to each of the 300 employees working in the…

A: The amount received by a business entity by issuing shares at an amount higher than its par value is…

Q: Spaulding Inc. granted their executives incentive stock options on January 1, 2023. On this date,…

A: Stock options can be defined as an equity compensation that is granted to the employees by their…

Q: Under its executive stock option plan, National Corporation granted 30 million options on January 1,…

A: Journal Entry is basically refers to the record of the debits and credits transaction entries in the…

Q: .On January 1, 2019, Kamagong Company granted 100 share options each to 500 employees, conditional…

A: Total expected cost = No. of share options per employee x no. of  employees x fair value per option…

Q: On January 1, 2018, PAPASA O ASA Co granted 300 share options to each of its 300 employees for the…

A: It is a contract between company and employees which gives right to the employees to buy company’s…

Q: On January 1, 2020, Crane Corporation issued $8 million of 10-year, 7% convertible debentures at…

A: Convertible bonds are defined as the bonds that the holder or receiver can convert these bonds into…

Q: On January 1, 2020, Crane Corporation issued $8 million of 10-year,7% convertible debentures at 106.…

A: Bonds payable is a liability account that contains vthe amount owned to bond holders by the issuers.

Q: Holder Ltd. purchases an options contract from Issuer Ltd. that gives Holder Ltd. the right to…

A: Australian Accounting Standard Board (AASB) develops, issues and maintains the accounting…

Q: Mary Poppins plans to start a company and offers to sell 30,000 ordinary shares at a price of $2 per…

A: The total amount received from investor will include the application money received from 40,000…

Q: Under its executive stock option plan, National Corporation granted 12 million options on January 1,…

A: Stock options is a employee benefit offered to employee by his/her company. It is an option given to…

Q: On August 15, 2019, Outkast Co. invested idle cash by purchasing a call option on Counting Crows…

A: Journal entry:

Q: On January 1, 2021, Adams-Meneke Corporation granted 25 million incentive stock options to division…

A:

Q: In the financial year to June 30, 2021, HiFi Ltd issued options for 400,000 shares. During that…

A: Lets understand the basics. For calculating basic EPS, we need to use below formula. Basic EPS =…

Q: January 1, 20x1, Mimosa Company grants 10,000 share options with a 10-year life to each of the 12…

A: Employee Stock Ownership Plan is the benefit plan given to the existing employees of the company.…

Q: Tom Hank buys 150 shares of J.W stock for $85 per share and a three-month J.W call option with an…

A: Total Shares  $     150.00 Stock Price  $      85.00 exercise price  $     105.00 Premium   $…

Q: Under its executive stock option plan, Western Corporation granted options on January1, 2021, that…

A: Stockholder's equity: Stockholder's equity is the amount inclusive of shares held and the retained…

Q: Under its executive stock option plan, National Corporation granted 12 million options on January 1,…

A: Given information is: Number of options granted = 12 million options Fair value of option = $5 per…

Q: On January 1, 2021, Howmet Aerospace granted options that permit executives to purchase 34 million…

A: A stock is a financial instrument issued by a corporation to raise equity funds from the primary…

Q: On January 1, 2019, the shareholders of Aylmer approved a plan that grants options to the company's…

A:

Q: Under its executive stock option plan, Mining Co. granted options on January 1, 2021, that permit…

A: The net worth is represented by the stockholder's equity. It also shows the amount that would be…

Q: Compute the amount of compensation expense for 2022 and 2023. (Enter your answers in millions…

A: Compensation Expenses   ($ in million)   2022 $25.2 2023 $26.6

Q: Heidi Software Corporation provides a variety of share-based compensation plans to its employees.…

A: 1. Determine the total compensation cost pertaining to the options. Total compensation cost =…

Q: what is the compensation expense related to the options to be recorded in 2022?

A: IFRS 2 deals with Share based payments.  In share based payments, the compensation expense is the…

Q: On April 1, 2020, Gamma Corp. purchases a call option for $ 500, which gives Gamma the right to buy…

A: Options contract provide option holder a right to enter into a transaction at a particular price for…

Q: On January 1, 2021, Major Corp. granted its employees an option to purchase 5,000 of Major's common…

A: Employee Stock Option Plan: It is an employee benefit plan to participate in the Employee Stock…

Q: At January 1, 2021, the company had issued 40,000 executive stock options permitting executives to…

A: As per IAS 102, Share based payments Compensation expense will be recognised each year, over vesting…

Q: On January 1, 2010, Barwood Corporation granted 5,000 options to executives. Each option entitles…

A: Annual expense=Total compensation expenseBenefit period=$150,0002=$75,000

Q: Newmont Corp grants stock options to its top executives. On January 1, 2021, 24 million options were…

A: Equity shares are those shares which do not have preferential right on dividend and repayment of…

Q: On January 1, 2020, Jade Company granted 100 share options each to 500 employees, conditional upon…

A: Options are issued to the employees at a lesser price.

Q: On January 1, 2021, Adams-Meneke Corporation granted 20 million incentive stock options to division…

A: Stock option plans are options to provided to employees to purchase company stock at a future date…

Q: On November 1, 2020, Tamarisk Company adopted a stock-option plan that granted options to key…

A: Date Account Titles and Explanation Debit ($) Credit ($) 2/1/2021 No Entry 0     No Entry   0…

Q: Union Pacific Corp uses stock options as a major compensation incentive for its top executives. On…

A: Stock options can be considered as compensation expense when the options give the right to buy at…

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.