OnJuly 4, 2020, StarGazer, Inc.,purchased a call option for$ 5,400,giving it the right to buy3,000shares ofMarzBarz, Inc.,at$30per share at any time during the next six months.OnSeptember 30,the option value was$11,200which the company duly recorded in its books.OnNovember 15, 2020,when the market price of theMarzBarz shareswere$38, StarGazerexercised the call option and took delivery of the shares. The entry on the books to record the transaction onNovember 15would be

a.

Investment In MarzBarz......DR$11,200;Derivatives - Financial Assets......CR$11,200

b.

Cash......DR$12,000;Derivatives - Financial Assets......CR$5,400;Gain On Derivatives......CR$6,600

c.

Cash......DR$11,200;Gain On Derivatives......CR$11,200

d.

Fair Value Investments In MarzBarz.... DR$90,000;Derivatives - Financial Assets.... CR$5,400;Cash....CR$73,400;Gain On Derivatives......CR$11,200

e.

Fair Value Investments In MarzBarz.... DR$114,000;Derivatives - Financial Assets.... CR$11,200;Cash....CR$90,000;Gain On Derivatives......CR$12,800