Question
On January 1, 2022, Mills Corp. purchased a call option on shares of XYZ stock. Terms of the contract were as follows: Number of
On January 1, 2022, Mills Corp. purchased a call option on shares of XYZ stock. Terms of the contract were as follows: Number of shares: 100 Strike price: $180 per share Expiration date: April 30, 2022 Total cost of the option contract paid at signing: $120 Seller of the option contract: First Investment Bank On January 1, 2022, XYZ stock was trading at $180 per share. The following additional information is known: On March 31, 2022, the price of XYZ stock was $200 per share. A market appraisal indicated that the time value of the option contract was $100 On April 5.2022, the price of XYZ stock was $195 per share. A market appraisal indicated that the time value of the option contract was $90. On this date. Mills settled the option contract. Required: 1. Indicate any amounts that Mills Corp: would have included in its March 2022 quarterly financial statements related to the option contract
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