A-12: Put option On March 1, 2022, Ferguson Corp. purchased a put option on shares of SST stock. The contract was for 100 shares at a strike price of $90 per share, with an expiration date of May 31, 2022. Ferguson settled the option on May 5 (assume cash settlement). Additional information pertaining to the option is provided below. March 1 March 31 May Price of SST stock: $90 $80 Time value of option: $50 $40 $30 5 $85 Required: 1. What is cost of the option paid by Ferguson Corp. on March 1, 2022? 2. Compute the balance of the option account on May 5 before the settlement 1. Cost of option: 2. Put Option account balance on settlement date