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A stock currently trades for $25. January call options with a strike price of $30 sell for $6. The appropriate risk-free bond has a price of $30. Calculate the price of the January put option.
Consolidation
The process of combining financial statements of a parent company with those of its subsidiaries to present as one entity.
Acquisition Method
A set of principles for financial reporting of the acquisition of one entity by another, focusing on recognizing and measuring the identifiable assets acquired, the liabilities assumed, and any non-controlling interest in the acquiree.
Subsidiary
An entity that is controlled by a parent company, typically through ownership of a majority of its voting rights, enabling the parent to influence the subsidiary's operations and decisions.
Deferred Tax Assets
Financial items on a company's balance sheet that reduce future tax liability due to deductible temporary differences, carryforwards, and credits.
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