ABC Corporation bought a put option on 500 P1000-par value XYZ Corp. preference shares at P1,525 each. ABC paid a premium of P15,000. The market price on the agreement date and on the exercise date are P1,520 and P1530 respectively. * Compute for the net gain or loss ?
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ABC Corporation bought a put option on 500 P1000-par value XYZ Corp.
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- If P. company paid $360000 to acquire a part of S. company common stocks and if the positive difference balance between the total implied value and the total amount of S. company equities was $130000 and the total amount of the book value of S. company equities was :$350000, then answer (16-20) The percentage of controlling.16 = interest in S. companyAt expiry, a holder of a call option with an exercise price of $45 (purchased for a premium of $0.85) over Wesfarmers shares (now trading at $47.21) will: O not exercise with a loss of $0.85 per share O exercise with a profit of $1.36 per share O exercise with a loss of $1.36 per share O exercise with a profit of $2.21 per shareCompute for the gain or loss from the derivative contract. And Show Complete solution. The forward contract involves selling 1,000 shares at P300 each on the agreed date. The shares sell at P320 on said date
- Apple Corporation issued its 3,000 ordinary share in exchange for land which has a fair market value of P350,000. The par value per share is P100 while the market value per share is P120. How much will be recognized as share premium by Apple Corporation?Rosa acquired 8 put option contracts on Imports United stock. The strike price was $42.50 and the option premium was $0.69. At expiration, Imports stock was selling for $45.96. What is the payoff on the option contracts? Answer should be formatted as a number with 2 decimal places (e.g. 99.99).Fiona Company issued 21,500 ordinary shares with par value of P85 in exchange for land with a fair market value of 920,000 and a building with fair market value of P1,087,500. What is the amount to be debited for Share Premium-Ordinary?
- XYZ Co. acquired land with fair value of P900,000 by issuing 10,000 shares with par value of P9 per share and quoted price of P81 per share. 1. What is the initial cost of land? a. P810,000 b. P900,000 c. P90,000 d. P0 2. Assuming the fair value of the land is not determinable, what is the initial cost of land? Prepare the journal entry to record the acquisition of land. a. P810,000 b. P900,000 c. P90,000 d. P0 3. Assuming both the fair value of the land and the shares are not determinable, what is the initial cost of land? Prepare the journal entry to record the acquisition of land. a.P810,000 b. P900,000 c.P90,000 d. POPlease show solution Thank youOn October 25, Mr. Smith purchased 5 listed XYZ Cor poration July 50 calls and paid a $3 premium on each call. The current market price of X YZ Corporation is $48 per share. What would the breakeven point be for Mr. Smith per option? A. $45 B. $48 C. $53 D. $58
- XYZ Co. acquired land with fair value of P900,000 by issuing 10,000 shares with par value of P9 per share and quoted price of P81 per share. 1. What is the initial cost of land? a. P810,000 P900,000 b. c. P90,000 d. P0 2. Assuming the fair value of the land is not determinable, what is the initial cost of land? Prepare the journal entry to record the acquisition of land. a.P810,000 B.P900,000 C.P90,000 d. P0 3. Assuming both the fair value of the land and the shares are not determinable, what is the initial cost of land? Prepare the journal entry to record the acquisition of land.* a.P810,000 b.P900,000 c.P90,000 d.POBarnum Company stock sells at P70 a share with rights on. The subscription price is P55. Four rights are needed to purchase a new share of stock. What is the value of each right? A. P1.00B. P2.00C. P3.00D. P4.00E. None of the aboveno need of explanation