At Expiry, the Seller Holder of a Call Option (With

question 5

Multiple Choice

At expiry, the seller holder of a call option (with an exercise price of $32, sold for a premium of $0.85) over Wesfarmers shares (now trading at $32.50) will:

• A)be obligated to sell shares to the holder but still make a profit of $0.35 per share
• B)be obligated to sell shares to the holder but still make a profit of $1.35 per share
• C)be obligated to sell shares to the holder but still make a profit of $0.85 per share
• D)not be required to sell shares to the holder and make a profit of $0.85 per share.
• E)None of these are correct.

Describe the process and importance of adjusting entries for accurate financial reporting.

Explain the effects of adjusting and closing entries on financial statements.

Understand the calculation and implication of financial ratios such as total asset turnover and earnings per share.

Identify the requirements for preparing an adjusted trial balance and its significance in the accounting process.

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Definitions:

Quit A Habit

The process of stopping or breaking a regular tendency or practice, especially one that is considered detrimental to one’s health or well-being.

Daily Routine

A fixed schedule of activities that a person follows every day, which often helps in organizing time and tasks efficiently.

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The practice of inhaling and exhaling the smoke of burning tobacco, which can lead to addiction and various health issues.

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A concept in psychoanalytic theory referring to an individual's unconscious desire for death, self-destruction, or returning to an inorganic state.