The price of ABC stock is currently $42 per share, but in six months you expect it to rise to $50. ABC does not pay a dividend. You buy a six-month call on ABC, with a strike price of $45. The option cost $200
What holding period return do you expect on this call? Ignore transaction costs and taxes.
A) 150%
B) 200%
C) 250%
D) 300%
Answer: A
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The year-end adjusting entry to reflect an increase in the value of trading securities includes a
A) credit to Unrealized Gain on Short-Term Investments. B) credit to Short-Term Investments. C) credit to Allowance to Adjust Short-Term Investments to Market. D) credit to Realized Gain on Investments.
If you're pressed for time, it's a good idea to skip the analysis step and jump ahead to composing your message
Indicate whether the statement is true or false.
The dormant commerce clause comes into play when state regulations affect interstate commerce.
Answer the following statement true (T) or false (F)
The Revised Act explicitly requires a corporations's charter to authorize:
a. one or more classes of shares that have limited voting rights. b. one or more classes of shares that together are entitled to receive the net assets of the corporation upon dissolution. c. Both are correct. d. nothing. The Revised Act only recommends, not requires, the charter contents.