Anticipating lower share prices, investor A SELLS one futures contract on Amazon Inc. with expiration date of September 2006 and a price of $35 per share. In September 2006, the investor will deliver 100 shares of Amazon and get $35 per share. The investor does not receive anything on the futures contract until she delivers the shares. To protect against a rise in Amazon share prices, investor A also BUYS one European CALL option on 100 shares of Amazon with an exercise price of $35 per share, and expiration date of September 2006. The current price of the option is $3 per share. Anticipating lower share prices, investor B BUYS one European PUT option on 100 shares of Amazon Inc. with an exercise price of $35 per share, and expiration of September 2006. The current price of the option is $3 per share. For simplicity assume that the interest rate is zero and that the investors do not currently own any shares of Amazon. Calculate the initial cash flow, the break-even stock price at expiration and the maximum profits and losses for each investor. Which strategy is better

The ledger of laurie rental agency on march 31 of the current year includes the following selected accounts before adjusting entries have been prepared. debit credit prepaid insurance $ 5,400 supplies $ 4,500 equipment 40,000 accumulated depreciation—equipment $12,600 notes payable 25,000 unearned rent revenue 11,100 rent revenue 90,000 interest expense –0– salaries and wages expense 20,000 an analysis of the accounts shows the following. 1. the equipment depreciates $600 per month. 2. two-thirds of the unearned rent revenue was earned during the quarter. 3. the note payable is dated january 1 and bears 12% interest. 4. supplies on hand total $800. 5. the insurance policy is a two-year policy dated january 1. instructions: a. prepare the adjusting entries at march 31, assuming that adjusting entries are made quarterly. additional accounts are: depreciation expense, insurance expense, interest payable, and supplies expense. b. compute the ending balances for prepaid insurance, unearned rent revenue, and rent revenue, and indicate in which financial statement those items will be reported.