Foxtrot Ltd. made the following investments during its 2011 fiscal year.
a. The company places $30,000 in a six-month term deposit with its bank.
b. The company purchases from its broker a call option on 1,000 shares of RBC Financial, a publicly traded company, for $3,500, in anticipation of an increase in the stock price of RBC.
c. Foxtrot buys 25% of the outstanding shares of Quickstep Company. The purchase was made in anticipation of a bid by Tango Inc. to purchase all of the shares of Quickstep within the next nine months.
d. The company buys $15,000 of shares in Encana, a publicly traded corporation with a market capitalization of more than $20 billion.
Required:
Identify how Foxtrot should categorize the above financial assets. Briefly explain the reason for the classification.