On January 2, 2020, Crane Company purchases a call option for $270on Merchant common stock. The call option gives Crane the option to buy1,040shares of Merchant at a strike price of $51per share. The market price of a Merchant share is $51on January 2, 2020 (the intrinsic value is therefore $0). On March 31, 2020, the market price for Merchant stock is $54per share, and the time value of the option is $210.

What was the effect on net income of entering into the derivative transaction for the period January 2 to March 31, 2020?

Unrealized Holding