Topic: Option Pricing When computing, please do not round off. Only final answers must be rounded off to two decimal places Based on the table, compute the 2. value of the put option.
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Topic: Option Pricing
When computing, please do not round off. Only final answers must be rounded off to two decimal places
Based on the table, compute the
2. value of the put option.
Step by step
Solved in 2 steps with 2 images
- The investments of Steelers Inc. include a single investment: 33,100 shares of Bengals Inc. common stock purchased on September 12, 2016, for 13 per share including brokerage commission. These shares were classified as available-for-sale securities. As of the December 31, 2016, balance sheet date, the share price declined to 11 per share. a. Journalize the entries to acquire the investment on September 12 and record the adjustment to fair value on December 31, 2016. b. How is the unrealized gain or loss for available-for-sale investments disclosed on the financial statements?Subscriptions On August 3, 2019, the date of incorporation, Quinn Company accepts separate subscriptions for 1,000 shares of 100 par preferred stock at 104 per share and 9,000 shares of 110-par, no-stated-value common stock for 22 per sl1are. The subscription contracts require a 10% down payment, with the balance due by November 1, 2019. Shares are issued to each subscriber upon full payment. On November 1, Quinn received the remaining balances for the shares of preferred stock and common stock. Required: Prepare journal entries to record all the transactions related to: 1. the preferred stock 2. the common stockAn entity provided the following shareholders' equity at year-end:10% cumulative preference share capital, P100 par, 30,000 shares 3,000,000Ordinary share capital, P100 par value, 50,000 shares 5,000,000Retained earnings 4,000,000Dividends in arrears on the preference shares are for 5 years. If the entity were to be liquidated, the preference share would receive par plus a premium of P300,000. What is the book value per ordinary share?
- Alpha company reported the following equity accounts on January 1, 2020. Share capital, P20 par, P8,000,000; Share premium, P2,750,000; Retained earnings, P1,275,000. All shares outstanding on January 1 were issued for P26 a share. On December 31, the entity reacquired 20,000 shares at P24 a share and retired them. What is the balance of the share premium?1. Avalanche Inc. revealed the following information for the year ended December 31. 2021 Preference share. P100 par-P2.4 million; Share premium, preference - P700,000; Ordinary share, P15 par-P3.5 million, Share premium, ordinary-P1.5 million. Subscribed ordinary share - P100,000, Retained earnings - P2 million, Subscription receivable, ordinary - P20,000 How much is the legal capital? A.P6 million B.PB 1 million CP5.9 million D.P8 2 million 2.At the beginning of 2021, DAI Corp. was organized with authorized capital of 200,000, P500 par value shares. The following transactions transpired during its first year of business. February 4- Issued 15.000 shares at P510 per share April 10- Issued 3,000 shares for services received (FMV of the services is P1.7 million). October 23-Issued 5,000 shares in exchange for a land (FMV) the land is P3 million) What amount should be reported as share premium? A.11.500.000 B. 23.000 C.850.000 D.12.350.000 3. At the beginning of 2021, DAI Corp. was…Sabo Company reported the following shareholders’ equity at year end:6% noncumulative preference share share capital, P100 par,Liquidation value of P105 per share 1,000,000Ordinary share capital, P100 par 3,000,000Retained earnings 950,000Preference dividends have been paid up to December 31, 2020. What is the book value per ordinary share?
- Accounting Swifty Corp. has the following portfolio of securities acquired for trading purposes and accounted for using the FV-NI model at September 30, 2020, the end of the company’s third quarter: Investment Cost Fair Value 53,000 common shares of Yuen Inc. $355,100 $212,000 4,300 preferred shares of Monty Ltd. 163,400 172,000 1,900 common shares of Oakwood Inc. 171,000 170,050 On October 8, 2020, the Yuen shares were sold for $6.70 per share. On November 16, 2020, 3,000 common shares of Patriot Corp. were purchased at $44.90 per share. Swifty pays a 1% commission on purchases and sales of all securities. At the end of the fourth quarter, on December 31, 2020, the fair values of the shares held were as follows: Monty $103,700; Patriot $119,500; and Oakwood $192,850. Swifty prepares financial statements every quarter. (a) Prepare the journal entries to record the sale, purchase, and adjusting entries related to the portfolio for the fourth quarter of 2020.…JJJ Company provided the following information: Net income for 2020 11,000,000 Net income for 2021 15,000,000 Net income for 2022 18,000,000 Ordinary shares outstanding during 2020 600,000 On January 1, 2021, the entity granted a rights issue in the ratio of one new share for each 5 outstanding shares or a total of 120,000 shares. The rights are exercisable on March 1, 2021 and the exercise price is P5 per share. The market price of one ordinary share immediately before exercise of rights on March 1, 2021 is P11. 1. Compute for the adjustment factor. 2. Compute the basic earnings per share for 2020.JJJ Company provided the following information: Net income for 2020 11,000,000 Net income for 2021 15,000,000 Net income for 2022 18,000,000 Ordinary shares outstanding during 2020 600,000 On January 1, 2021, the entity granted a rights issue in the ratio of one new share for each 5 outstanding shares or a total of 120,000 shares. The rights are exercisable on March 1, 2021 and the exercise price is P5 per share. The market price of one ordinary share immediately before exercise of rights on March 1, 2021 is P11. 1. Compute the basic earnings per share for 2021. 2. Compute the basic earnings per share for 2022.
- JJJ Company provided the following information: Net income for 2020 11,000,000 Net income for 2021 15,000,000 Net income for 2022 18,000,000 Ordinary shares outstanding during 2020 600,000 On January 1, 2021, the entity granted a rights issue in the ratio of one new share for each 5 outstanding shares or a total of 120,000 shares. The rights are exercisable on March 1, 2021 and the exercise price is P5 per share. The market price of one ordinary share immediately before exercise of rights on March 1, 2021 is P11. Compute for the theoretical value of share ex-right.Alpha company reported the following equity accounts on January 1, 2020. Tpoint hare capital, P20 par, P8,000,000; Share premium, P2,750,000; Retained earnings. P1,275,000. All shares outstanding on January 1 were issued for P26 a share. On December 31. the entity reacquired 20,000 shares at P24 a share and retired them. What is the balance of the share premium?On January 1, 2021, Cream Company offered the c share appreciation rights. The terms are predetermined price P100, 10,000 shares, vesting period 3 years and expiration date, December 31, 2023. The share appreciation is to be paid on the date of exercise. The following are the share prices: January 1, 2021 100 December 31, 2021 105 December 31, 2022 95 December 31, 2023 105 How much is the liability for December 31, 2022?
