On April 1, 2020, Gamma Corp

question 41

Short Answer

On April 1, 2020, Gamma Corp. purchases a call option for $ 500, which gives Gamma the right to buy 1,000 shares of Delta Inc. for $ 30 each until December 1, 2020. Delta Inc. shares are currently trading for $ 30. At June 30, 2020, the options are trading at $ 4,800 and the shares at $ 32 each. At December 1, 2020, the options expire with no value. The entry to record the purchase of the call option is

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Definitions:

Radioactive Decay

The method through which an unstable atomic nucleus releases energy through the emission of radiation.

Confining Pressure

The type of pressure that results when the force imposed on a rock is the same amount from all directions.

Lattice Vibration

The collective oscillations of atoms in a crystalline solid, contributing to the material's thermal and electrical properties.

Liquid-Solid Boundary

The interface between a liquid and a solid phase, significant in the study of phase transitions and material properties.