Make a journal entry for an Exchange-traded option:

Howland purchased 4,200 April-series Hobbes Transglobal calls at a strike of $40.00 when the shares were trading at $37.20. Murphy says to use sigma of .324 and rF 2.71 for that. At fye the options were $2.78 in the money. The stock closed $41.15 on 12/31. The yield on the ten-year was 2.88%.

I see that USD direct rate strengthened by 6.32746479 cents CAD. Julia was right about rates – down 18 bps for the GenCos from dop.

For the land deals, I’d start with the average per acre as BV. Howland thinks he paid about the same rate when he bought those back in ’12. Pretty crazy how prices have moved since the GenCo announcement. The Overseas lot is 7.4 acres.

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Option is typetof derivatives under which person has option whether to excercise contract or ... View the full answer