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Put Option
This is a right which is granted in exchange for an agreed-upon sum to sell property. Options are mostly used frequently in securities transactions it also used stock options used as incentive compensation for key managers. If the right is not exercised within the specified time period it expires and the holder forfeits the money. Instead of exercising options, most investors prefer to purchase and sell them in the open market before expiration cashing in on rise in trading value. The most interesting features of trading in options are the amount of leverage option buyers enjoy. Buyers put up relatively small amount of money to handle a largest amount of common shares potentially leveraging sizable profits.
Milan Corporation is interested in buying a machine that will cost $50,000, and it will depreciate it on straight-line basis over a 5-year period. The machine is expected to last f
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a. You only need to complete the 2012 column, leave the 2011 column as is. b. Base you net income and certain other information needed from the income statement you completed in
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