Circle the correct answer symbol

A)

On January 1, 2020,Nader entered in a call option contract to purchase 5000 shares of XYZ corporation on June 30,2020 at a price of $100 per share. the market price of share on Jan.1,2020 was $100 per share while the time value of share on Jan.1 was $200. On March 30 the market price per share was $120 per share and time value reduced to $80 and on June 30 the market price was $105 per share and time value reduced to $50, at that date call option was sold, compute the value of call option should be debited on Jan.1, 2020?

a.

$100.

b.

$200.

c.

$300.

B)

On January 1, 2020,Nader entered in a call option contract to purchase 5000 shares of XYZ corporation on June 30,2020 at a price of $100 per share. the market price of share on Jan.1,2020 was $100 per share while the time value of share on Jan.1 was $200. On March 30 the market price per share was $120 per share and time value reduced to $80 and on June 30 the market price was $105 per share and time value reduced to $50, at that date call option was sold, compute the unrealized gain on March 30, 2020?

a.

$600,000.

b.

$500,000.

c.

$100,000.

C)

Sameer company acquired 10000 shares at Jan.1, 2020 at a price of $100 per share, on March 30, the market price of share is increased to $120 per share, at that date Sameer entered in a put option contract to hedge its investment for 6 months, the market price on June 30, 2020 was $125 and on Sept. 30 $110, compute the unrealized loss should be journalized on Sept 30,2020?

a.

$150,000.

b.

No loss.

c

$100,000.

D)

Sameer company acquired 10000 shares at Jan.1, 2020 at a price of $100 per share, on March 30, the market price of share is increased to $120 per share, at that date Sameer entered in a put option contract to hedge its investment for 6 months, the market price on June 30, 2020 was $125 and on Sept. 30 $110, compute the unrealized gain should be journalized on June 30,2020?

a.

No gain.

b.

$50,000.

c.

$20,000.

E)

On Jan.1, 2020, Radi Company entered into a future contract to purchase 100 ton of Rice on August 30,2020 at a price of $500 per ton. On June 30, the ton price was $550 and on Aug.30 was $580, all the rice was sold on Dec.30, by $800 per ton, compute the cost of inventory purchased on Aug.30,2020?

a.

$55,000.

b.

$50,000.

c.

$58,000

F)

On Jan.1, 2020, Radi Company entered into a future contract to purchase 100 ton of Rice on August 30,2020 at a price of $500 per ton. On June 30, the ton price was $550 and on Aug.30 was $580, all the rice was sold on Dec.30, by $800 per ton, compute realized gain from future contract in Dec.31,2020 after selling all the Rice?

a.

$5,000.

b.

$8,000.

c.

$13,000.

G)

On Jan.1, 2020, Radi Company entered into a future contract to purchase 100 ton of Rice on August 30,2020 at a price of $500 per ton. On June 30, the ton price was $550 and on Aug.30 was $580, all the rice was sold on Dec.30, by $800 per ton, compute unrealized gain should be credited in adjusting entry of Aug. 30,2020?

a.

$5,000.

b.

$3,000.

c.

$8,000.