On January 1, 2022, Rosewood Corp purchased a put option on shares of ICM stock Terms of the contract were as follows Number of shares 100 Strike price $280 per share Expiration date May 31, 2022 Total cost of the option contract paid at signing $120 Seller of the option contract First Investment Bank On January 1, 2022, ICM stock was trading at $280 per share The following additional information is known On March 31, 2022, the price of ICM stock was $250 per share A market appraisal indicated that the time value of the option contract was $100 On May 10, 2022, the price of ICM stock was $255 per share A market appraisal indicated that the time value of the option contract was $90 On this date, Rosewood settled the option contract Required 1 Indicate any amounts that Rosewood Corp would have included in its March 2022 quarterly financial statements related to the option contract

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Posted on Oct 01, 2024

On January 1, 2022, Rosewood Corp. purchased a put option on shares of ICM stock. Terms of the contract were as follows: Number of shares:

On January 1, 2022, Rosewood Corp. purchased a put option on shares of ICM stock. Terms of the contract were as follows:

Number of shares: 100
Strike price: $280 per share
Expiration date: May 31, 2022
Total cost of the option contract paid at signing: $120
Seller of the option contract: First Investment Bank

On January 1, 2022, ICM stock was trading at $280 per share. The following additional information is known:

On March 31, 2022, the price of ICM stock was $250 per share. A market appraisal indicated that the time value of the option contract was $100.
On May 10, 2022, the price of ICM stock was $255 per share. A market appraisal indicated that the time value of the option contract was $90. On this date, Rosewood settled the option contract.

Required: 1. Indicate any amounts that Rosewood Corp. would have included in its March 2022 quarterly financial statements related to the option contract.