Question: answer asap please and thank you Question 1 1 pts Stock options are derivative instruments because: 12 Their value arises from the value of the





Question 1 1 pts Stock options are derivative instruments because: 12 Their value arises from the value of the security the options can be used to buy O They represent share interest in the corporation O They require a large initial investment They represent an obligation to buy shares at a later date Question 4 1 pts Assume an investor chose to convert their convertible discount bond into shares at maturity. The journal entry on the issuer's books to record the conversion would include: a debit to contributed capital - conversion rights O a credit to bonds payable O a debit to common shares a credit to Discount on Bonds Payable Question 5 1 pts Preferred shares redeemable at the investor's option are classified as and their dividends are reported as debt; financing expense on the income statement - equity; financing expense on the income statement debt; equity convertible; equity
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
