Fair value journal entries, trading investments gruden bancorp inc. purchased a portfolio of trading securities during year 1. the cost and fair value of this portfolio on december 31, year 1, was as follows: name number of shares total cost total fair value griffin inc. 1,600 $40,000 $44,800 luck company 1,250 37,500 33,750 wilson company 1,000 40,000 37,000 total $117,500 $115,550 on may 10, year 2, gruden bancorp inc. purchased 1,200 shares of carroll inc. at $29 per share plus a $100 brokerage commission. provide the journal entries to record the following: a. the adjustment of the trading security portfolio to fair value on december 31, year 1. year 1, dec. 31 cash unrealized gain (loss) on trading investments b. the may 10, year 2, purchase of carroll inc. stock. year 2, may 10 cash investments-carroll, inc.

Compare the sources of consumer credit 1. consumers use a prearranged loan using special checks 2. consumers use cards with no interest and non -revolving balances 3. consumers pay off debt and credit is automatically renewed 4. consumers take out a loan with a repayment date and have a specific purpose a. travel and entertainment credit b. revolving check credit c. closed-end credit d. revolving credit

Profits from using currency options and futures. on july 2, the two-month futures rate of the mexican peso contained a 2 percent discount (unannualized). there was a call option on pesos with an exercise price that was equal to the spot rate. there was also a put option on pesos with an exercise price equal to the spot rate. the premium on each of these options was 3 percent of the spot rate at that time. on september 2, the option expired. go to the oanda. com website (or any site that has foreign exchange rate quotations) and determine the direct quote of the mexican peso. you exercised the option on this date if it was feasible to do so. a. what was your net profit per unit if you had purchased the call option? b. what was your net profit per unit if you had purchased the put option? c. what was your net profit per unit if you had purchased a futures contract on july 2 that had a settlement date of september 2? d. what was your net profit per unit if you sold a futures contract on july 2 that had a settlement date of september 2

Why is investing in a mutual fund less risky than investing in a particular company’s stock?