You Own a Call Option and Put Option That Both

question 92

Multiple Choice

You own a call option and put option that both have the same exercise price of $50, and their respective prices are $4 and $3. The stock is currently trading at $60. Calculate the dollar return on this strategy.

• A) $1.00
• B) $2.00
• C) $3.00
• D) $4.00
• E) $5.00

Know how to calculate the non-controlling interest in earnings with necessary adjustments for both realized and unrealized profits from sales.

Comprehend the process and implications of intercompany transactions on consolidation adjustments for depreciation expense, net book value of equipment, and non-controlling interests.

Analyze how transactions between parent and subsidiary companies affect the consolidated net income and non-controlling interest's share.

Grasp the steps needed to prepare a consolidated statement of comprehensive income and changes in equity.

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Definitions:

Dot Operator

In programming, the dot operator is used to access the properties or methods of an object.

Printf Method

A method in Java's PrintStream class that allows formatted strings to be output to the console, similar to the printf function in C.

Integers

Whole numbers that can be positive, negative, or zero, but not fractions or decimals.

Decimal Numbers

Numbers expressed in the base-10 numeral system, including integers, fractions, and real numbers notated with a decimal point.