Exhibit 22 $$\begin{array} { c c c } \text { Wtrike Price } & \text { Put Price } & \text { Call Price } \\\hline \$22.50 &\$ 2.65 & \$ 1.85\end{array}$$

question 58

Multiple Choice

Exhibit 22.8
Use the Information Below for the Following Problem(S)
Consider the following information on put and call options for a common stock
$$\begin{array} { c c c } \text { Wtrike Price } & \text { Put Price } & \text { Call Price } \\\hline \$22.50 &\$ 2.65 & \$ 1.85\end{array}$$
-Refer to Exhibit 22.8.Calculate the net value of a covered call position at an expiration stock price of $20.

• A) $1.85
• B) $4.45
• C) $18.15
• D) $21.85
• E) $24.35

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Definitions:

Intangible Assets

Assets that do not have physical substance but are identifiable non-monetary assets without physical substance, used in the production or supply of goods or services, for rental to others, or for administrative purposes.

Identifiability

The capability to recognize, define, or distinguish assets and liabilities within a transaction or set of financial data.

AASB 138

A guideline issued by the Australian Accounting Standards Board that mandates how entities should account for and report on intangible assets.

Goodwill

The value of a company's brand name, solid customer base, good customer relations, good employee relations, and any patents or proprietary technology representing excess of purchase price over the fair market value of the net identifiable assets.