(Call Option) On August 15, 2016, Outkast Co. invested idle cash by purchasing a call option on Counting Crows Inc. common shares for $360. The notional value of the call option is 400 shares, and the option price is $40. The option expires on January 31, 2017. The following data are available with respect to the call option. Date Market Price of Counting Crows Shares Time Value of Call Options September 30, 2016 $48 per share $180 December 31, 2016 46 per share 65 January 15, 2017 47 per share 30 InstructionsPrepare the journal entries for Outkast for the following dates.(a) Investment in call option on Counting Crows shares on August 15, 2016.(b) September 30, 2016—Outkast prepares financial statements.(c) December 31, 2016—Outkast prepares financial statements.(d) January 15, 2017—Outkast settles the call option on the Counting Crows shares.

Q: down 10 percent. Compute the fair market value of an American put option on Strategy Inc. stock with…

A: Put Option: A put option provides the buyer the right to exercise the option when the spot price of…

Q: 14. Open Skies purchased a portfolio of available-for-sale securities during the year. The cost and…

A: PART a.   JOURNAL ENTRIES FOR OPEN SKIES ON THE PURCHASE OF PORTFOLIO DURING A YEAR Eden Rock…

Q: Compute the value of a share of Fellows Company stock using the price-earnings multiples method

A: Value of share by Price earnings ratio = P/E ratio * Earnings per share

Q: Find the basic cost (ignoring any broker fees) of buying 300 shares of Idno Tech (ITX) at the day's…

A: the net close column of the stock table reflect the closing price of the a stock for a day. Given,…

Q: The shares of Exxon are currently trading at $88. A “put buyer" recently paid a premium of $5 for…

A: Put Seller's Profit is limited to the premium received as the seller of an option doesn't have the…

Q: The current price (10/22/23) of Tesla stock (TSLA) is $211.99. An investor who holds 100 shares of…

A: Current price: $211.99Strike price: $205Call option premium: $14Number of shares: 100

Q: of TIC Ltd. are currently priced at $ 415 and call option exercisable in three months' time has an…

A: The given problem can be solved using black Scholes Model.

Q: Stock in Cheezy-Poofs Manufacturing is currently priced at $80 per share. A call option with a $80…

A: A call option is is a contract that gives the buyer the right but not obligation to buy the share at…

Q: The Uber stock (UBER) is up 20% on Tuesday, January 6, 2022, due to news of an upcoming acquisition…

A: Selling call option (C-)-- This means that MATT is giving the buyer of the call option the option to…

Q: At December 31, 2020, the available-for-sale equity portfolio for Zorro Foods Corp. is as follows.…

A: Fair value is defined as the value which each item fetches when it is traded in the marketplace. It…

Q: On January 1, 2022, Rosewood Corp. purchased a put option on shares of ICM stock. Terms of the…

A: The date, the sum to be credited and debited, a brief description of the transaction, the banks…

Q: Available-for-Sale Securities On December 31, 2015, Marsh Company held 1,000 shares of Xenon Company…

A: Investment in available-for-sale securities is the type of investment that can be traded within a…

Q: Engels At the beginning of May, Superend Company issued 380 000 preference shares with a par value…

A: Cash received from issue of preferred shares = no. of shares issued x market price per share =…

Q: An investor has established a long straddle on shares of ABC ltd at sh 5 each for a put option and a…

A: Long straddle -This option trading strategy consists of buying a long call and long put and both the…

Q: ares of TIC Ltd. are currently priced at $ 415 and put option exercisable in three months' time has…

A: The given problem relates to Black Scholes model.

Q: In respect of this investment, the adjusting journal entry required at year-end would involve which…

A: When in November 1, 1000*30=$30000 + $500 = $30500 And on December 31, the price has increased from…

Q: None

A: a. The option is a Call option because it gives you the right to buy TWTR shares at a specified…

Q: Purchases of common stock by jamison december 31 2016 Company Invested In Cost Fair Value Readfield…

A: The company can purchase the common stock of another company. The company invests in another company…

Q: #27 ABC Company started operations way back in the year 2000. The entity’s capital structure…

A: Introduction: Diluted earnings per share is calculated by assuming that each dilutive security of…

Q: On January 1, 2022, Mills Corp. purchased a call option on shares of XYZ stock. Terms of the…

A: In case of option contracts, the investor has the option to buy or sell the underlying asset by the…

Q: One of the companies set a capital structure on December 31, 2017 and it was as follows: Ordinary…

A: Share Capital - By issuing common or preferred stock, a firm can raise share capital. With…

Q: Prepare the extracts to be shown in the statement of profit or loss and the statement of financial…

A: Income statement: The income statement determines the net income of the business by subtracting the…

Q: None

A: Step 1:  The calculation of the arithmetic return, geometric return and dollar-weighted rate of…

Q: Please correct answer and don't use hand rating

A: Step 1:(a). Put (b).  Current stock price (S) = $97Strike price (K) = $102Time to expiration (T) = 3…

Q: Stock in Cheezy-Poofs Manufacturing is currently priced at $75 per share. A call option with a $75…

A: A call option is is a contract that gives the buyer the right but not obligation to buy the share at…

Q: ane Company has granted 200 share appreciation rights to each of its 300 employees on January 1,…

A: One sort of equity compensation known as a share appreciation right (SAR) allows the holder to…

Q: C Ltd. are currently priced at $ 415 and put option exercisable in three months' time has an…

A: The given problem relates to Black Scholes Model.

Q: Suppose Randall and arts and company stock is currently selling for $70 per share options exist that…

A: As per the given information: Current selling price of company stock - $70 per share Option to buy…

Q: In 2018, Keitel made the following changes to the portfolio: E On Feb. 15, sold 2,400 Alpha shares…

A: Equity Investment in FVOCI Investment which can be classified into two types FVPL and FVOCI and the…

Q: ABC Inc. was established in 2013 with 100,000 ordinary shares with a nominal value of €20 each.…

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

Q: ares of TIC Ltd. are currently priced at $ 415 and call option exercisable in three months' time has…

A: The given problem relates to Black Scholes Model.

Q: In its 10Q dated February 4, 2022, LLL. Incorporated, had outstanding employee stock options…

A: Current stock price (S) = $28.89Strike price (K) = $31.32Time (T) = 3.5 yearsRisk-free rate (r) =…

Q: A trader has established a short straddle on shares of ABC ltd at sh 5 each for a put option and a…

A: A short straddle is an options trading strategy where a trader simultaneously sells both a call…

Q: Buyer Company bought 100 options of Target Co one year ago and would like to exercise them today.…

A: In an option contract, the dollar profit and loss can be determined by deducting the purchase price…

Q: The following price quotations are for exchange-listed options on Primo Corporation common stock.…

A: Options are the derivative instruments that provide the investor or holder a right to purchase or…

Q: a) Ace Company stockholder's equity at the end of 2015 is shown in the table below. Determine the…

A: Ordinary share capital means the shares having the voting rights in the entity.

Q: In its 10Q dated February 4, 2016, LLL, Inc., had outstanding employee stock options representing…

A: The Black-Scholes formula calculates the theoretical price of a European call or put option, taking…

Q: The common shares of Twitter, Incorporated (TWTR) recently traded on the NYSE for $89 per share. You…

A: An option which is a contract gives the buyer the option to buy or sell the underlying asset.…

Q: ssume you purchased the right to sell 2,000 shares of Target stock in February 2022 at a strike…

A: Put options gives opportunity to sell stocks on the expiration of period but there is no obligation…

Q: None

A: Let's go through the transactions step by step, updating the investment portfolio and accounting for…

Q: What is the 2017 accretion/dilution in Glocabe's GAAP EPS assuming the acquisition took place on…

A: An accretion or dilution is the computation and measurement of the effects over the earnings per…

Q: On December 31, 2014, Hubble Corp. has the following securities in its portfolio of temporary…

A: If a stock drops in value after an owner purchases it but does not sell it, this is known as an…

Q: Prepare the journal entries for both 2016 and 2017.

A: Given information is: Byrd company bought computers for 60k. Terms of the sale were 2/10, n30. Byrd…

Employee Benefits

In an organization employees are the most important resource and most important asset. They can lead an organization to the sky or can be the reason for unsuccessful of business. Therefore, it is very much important that employees of an organization should be satisfied by the environment of the organization and most importantly with the salary, wages incentives, etc.