Nexians Corporation awarded fixed options to 100 employees on 1 January 20x4 to acquire 20,000 shares of the company. The fair value of the option was determined to be $1.20 using the Black-Scholes models and the exercise price was $3.50 per share (same as the market price at 1 January 20x4). Other terms of the options are shown as follows: a. The share option expired five years after the date of the grant. b. The employees must remain employed until 31 December 20x6. c. The management estimated a forfeiture rate of 2%. This estimate was revised at the end of each year. d. In 20x4, three employees left the firm and the forfeiture rate was revised to 5% at 31 December 20x4. e. In 20x5, another two employees left the firm and the forfeiture rate was maintained at 5% at 31 December 20x5. f. In 20x6, three employees left the firm. Required: 1. Calculate the remuneration expense relating to the share options for the following years 20x4, 20x5 and 20x6. 2. Prepare the journal entries to record the share-based transactions for the period 20x4 to 20x6.

Nexians Corporation awarded fixed options to 100 employees on 1 January 20x4 to acquire 20,000 shares of the company. The fair value of the option was determined to be $1.20 using the Black-Scholes models and the exercise price was $3.50 per share (same as the market price at 1 January 20x4). Other terms of the options are shown as follows:a. The share option expired five years after the date of the grant.b. The employees must remain employed until 31 December 20x6.c. The management estimated a forfeiture rate of 2%. This estimate was revised at the end of each year.d. In 20x4, three employees left the firm and the forfeiture rate was revised to 5% at 31 December 20x4.e. In 20x5, another two employees left the firm and the forfeiture rate was maintained at 5% at 31 December 20x5.f. In 20x6, three employees left the firm.   Required:1. Calculate the remuneration expense relating to the share options for the following years 20x4, 20x5 and 20x6.2. Prepare the journal entries to record the…

On 1 May 20X4 XYZ invests in 18456 call options for Fantasy Travel Limited shares. The options have an exercise price of $100 per share, and will expire on 30 April 20X6. Price premium for each option is $25. Fantasy Travel Limited's shares price on 1 May 20X4 is $132. The balance sheet date for XYZ Ltd is 30 June. XYZ Ltd accounts for its financial instruments using fair value through profit and loss. Other data: Date 30 June 20X4 30 June 20X5 30 April 20X6 Share Price 146 131 150 Option price 34 24 43 What is the value of the options at the time when XYZ Ltd exercises the options on 30 April 20X6? PLEASE ENTER YOUR ANSWER IN WHOLE NUMBERS WITH NO COMMAS OR DOLLAR SIGNS (EG $1,000,000 SHOULD BE SHOWN AS 1000000; -$1,000,000 SHOULD BE SHOWN AS -1000000).

On March 1, 2025, Ferguson Corp. purchased a put option on shares of SST stock. The contract was for 100 shares at a strike price of $120 per share, with an expiration date of May 31, 2025. Ferguson settled the option on May 5 (assume cash settlement). Additional information pertaining to the option is provided below. March 1 March 31 May 5 Price of SST stock: $120 $110 $115 Time value of option: $30 $20 $10 Required: 1. Compute the cost of the option paid by Ferguson Corp. on March 1, 2025. 2. Compute the balance of the option account on date of settlement.