IBM Was Trading at $100 When Mrs

question 18

Multiple Choice

IBM was trading at $100 when Mrs. Peterson bought a 100 call on IBM at a price of $10. Three months later, IBM common stock was trading at $130, and the call option was trading at $33. The leverage factor for this situation would be:

• A)11x.
• B)3.3x.
• C)7.66x.
• D)25.38x.

Comprehend how event handling works with GUI components.

Understand the methods of initializing and managing applet execution.

Recognize Java's approach to color management and text representation in GUIs.

Understand the significance and use of package javax.swing in building Java applets.

---

Definitions:

Pro-Rata Share

A portion of something that is divided among participants in proportion to their share, interest, or contribution.

Proportionate Consolidation Method

A method of accounting where a parent company includes its share of the assets, liabilities, income, and expenses of a joint venture or associate in its financial statements proportionate to its ownership interest.

Identifiable Net Assets Method

An accounting technique used to value a company by identifying and valuing its tangible and intangible assets separately from goodwill.

IFRS

International Financial Reporting Standards are globally accepted standards for accounting, aiming at bringing transparency, accountability, and efficiency to financial markets around the world.