b. c. d. Decrease by $9,050,000 Increase by $9,650,000 Increase by $10,150,000 Decrease by $10,150,000 None of the above answers is correct. The correct answer is a $ e. f. increase/decrease. 2. On October 1, 2020, McCloud Co. purchased 1000 call options for a total of $400 on Baker Co. common stock. The call options give McCloud the right to buy 1000 shares of Baker common stock at an exercise or strike price of $80 per share on or before January 31, 2021. The market price of Baker common stock was $80 per share on October 1, 2020 and the time value was $0.40 per option. On December 31, 2020, when McCloud prepares its annual financial statements, the market price for Baker's stock was $87 per share, and the time value of the options was $0.10 per option. On January 31, 2021, the expiration date, McCloud settled the call options. At the time of settlement, the stock price was $86 and the time value of the options was zero. What was the total net gain or loss (realized and unrealized) related to these options to be reported on the 2020 income statement? Not enough information was given to determine the answer. b. $7,100 gain $5,600 gain d. $5,700 gain $6,700 gain f. None of the above answers is correct. The correct answer is $ a. c. e. b. c. d. Decrease by $9,050,000 Increase by $9,650,000 Increase by $10,150,000 Decrease by $10,150,000 None of the above answers is correct. The correct answer is a $ e. f. increase/decrease. 2. On October 1, 2020, McCloud Co. purchased 1000 call options for a total of $400 on Baker Co. common stock. The call options give McCloud the right to buy 1000 shares of Baker common stock at an exercise or strike price of $80 per share on or before January 31, 2021. The market price of Baker common stock was $80 per share on October 1, 2020 and the time value was $0.40 per option. On December 31, 2020, when McCloud prepares its annual financial statements, the market price for Baker's stock was $87 per share, and the time value of the options was $0.10 per option. On January 31, 2021, the expiration date, McCloud settled the call options. At the time of settlement, the stock price was $86 and the time value of the options was zero. What was the total net gain or loss (realized and unrealized) related to these options to be reported on the 2020 income statement? Not enough information was given to determine the answer. b. $7,100 gain $5,600 gain d. $5,700 gain $6,700 gain f. None of the above answers is correct. The correct answer is $ a. c. e