TNT CORP HAS THE FOLLOWING STOCK OPTION INFORMATION:OPTIONS GRANTED8,000,000GRANT DATE1/1/2018PAR VALUE/UNITEXERCISE PRICEVESTING DATEEXPIRATION DATEFV/UNIT OPTIONOPTIONS EXERCISEDEXERCISE DATEMARKET PRICE12112/31/202112/31/20264.554,210,0007/11/202436.5 REQUIRED: WHAT IS THE DEBIT TO COMPENSATION EXPENSE RECORDED IN 2019?REQUIRED: WHAT IS THE CREDIT TO APIC RECORDED AT THE DATE OF EXERCISE IN 2024?

The stock option is the method of compensating the employees by granting them the option to buy the…

Answered: TNT CORP HAS THE FOLLOWING STOCK OPTION…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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F1
Current stock price for XYZ $50.00 Interestrate 3% Dividend rate 0% Option PUT PUT PUT PUT CALL CALL CALL CALL - Strike Expiration Option Price $30.00 6-months $40.00 6-months $50.00 6-months $50.75 6-months - $50.00 6-months $50.75 6-months $55.00 6-months $60.00 6-months $0.14 $0.77 $2.74 $2.97 $3.48 $2.97 $1.20 $0.15 Implied Vol 40% 32% 22% 21% 22% 21% 19% 15% Delta (AOption/AS) -0.023 -0.123 -0.431 -0.470 XYZ stock is currently trading at $50 per share. We ask our favourite trading desk to price a bunch of 6-month options on XYZ: 4 puts and 4 calls. The table above gives the information 0.569 0.530 0.299 0.065 For each option price we've run the price through the Black-Scholes formula and solved for implied volatility. The tables also gives the deltas: the derivative of each option price with respect to the stock price. As you know this means: Leave the implied volatility, the interest rate, and the dividend unchanged Change the current price of the stock by a small amount up and…
Consider April 2023 expiration call option on a share of AELZ stock with an exercise price of K95 per share selling on March 2, 2023 for K1.35. Exchange traded options expire on the third Friday of the expiration month, which for this option was April, 20. On March 2, AELZ sells for K90.90. Would you exercise the option? On April 20, AELZ sells for K96, what would be the value of the option at expiration? How much profit will the call holder make?
The following table lists prices of Amazon options in January 2018 when Amazon stock was selling for $1,200. Exercise Price Expiration Date April 2018 Call Price Put Price $ 31.10 $1,200 1,300 1,400 $1,200 1,300 1,400 $1,200 1,300 1,400 $132.70 73.20 70.10 134.20 $ 53.55 96.00 33.00 July 2018 $161.70 104.00 62.55 156.05 January 2019 $210.00 $ 88.05 155.35 133.25 112.00 190.00 Suppose that by January 2019, the price of Amazon could either rise from its January 2018 level to $1,200 × 1.25 = $1,500.00 or fall to $1,200/1.25 = $960.00. a. What would be your percentage return on a January expiration call option with an exercise price of $1,200 if the stock price rose? (Round your answer to 2 decimal places.) b. What would be your percentage return if the stock price fell? (Negative value should be indicated by a minus sign.) c. Which is riskier: the stock or the option? a. Percentage return b. Percentage return Which is riskier: the stock or the option? % (100) % Option C.
H2.
6- A put option (with shares as the underlying asset) was originally purchased for $1.44 and is now trading for $2.82. The exercise price is $34 and the underlying share is currently trading for $31.64. What is the intrinsic value of the option? a. $2.82 b. $0.00 c. $2.36 d. $1.44
SBI share is Rs. 200 per shareFuture lot size is 3000Margin requirement is 15%Future expiry is 31st December, 2020Call option of Rs. 200 strike price is Rs. 15Call option of Rs. 180 strike price is Rs. 30Call option of Rs. 220 strike price is Rs. 10Call option of Rs. 240 strike price is Rs. 5If you buy shares from cash market instead of future, how much extra money is required? If youform butterfly strategy between Rs.200 to Rs. 240 strike price, what would be the maximum profit and loss? If SBI share closes at Rs. 230 on expiry, what would be your profit and loss as perbutterfly strategy?
Contract Name Last Trade Date Last Price Bid Ask Change % Change Volume Open Interest Implied Volatility AAPL200417C00105000 (Links to an external site.) 2019-11-19 3:53PM EST 105.00 (Links to an external site.) 160.65 160.75 165.40 0.00 - 20 100 78.61% 7. Is this contract a call or a put option? 8. How much do you need to pay to buy this option contract? Hint: when you buy the contract, you need to use Ask price.
Give typing answer with explanation and conclusion The shares of ABC Ltd are currently selling at Shs.290 each at the stock exchange. The exercise price for a 6months call option is Shs260.The prevailing risk free rate is 12%.The variance of ABC ltd share price has been 15%. Required -Determine the value of such an option using Black & Scholes option valuation.
Question 3?
Please answer the highlighted questions with explanation
The stock price of Facebook is $28 and the strike price of a put option with 4 month maturity on a non-dividend-paying stock is $25. The risk-free interest rate is 8% per annum. With this information, the upper bound for the price of the call option with same strike price and expiration date is O I. Cts 25 O II. t s 28 O III. ct s 20.3074 O IV. None of the above.

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TNT CORP HAS THE FOLLOWING STOCK OPTION INFORM OPTIONS GRANTED GRANT DATE PAR VALUE/UNIT EXERCISE PRICE VESTING DATE XPIRATION DATE W/UNIT OPTION PTIONS EXERCISED ERCISE DATE RKET PRICE 8,000,000 1/1/2018 1 21 12/31/2021 12/31/2026 4.55 4,210,000 7/11/2024 36.5