On July 5, 2020, Winning Corp. purchased a call option for $2,400, giving it the right to buy 2,000 shares of Losing Corp. for $20 per share. On August 18, 2020, when the option value is $12,000, Losing settles the option for cash. The entry on Winnings books to record the settlement is

Select one:

a. Dr: Cash: 12,000 Cr: Gain or Loss on Derivatives: 12,000

b. Dr: Cash: 12,000 Cr: DerivativesFinancial Assets/Liabilities: 2,400 Cr: Gain or Loss on Derivatives: 9,600

c. Dr: DerivativesFinancial Assets/Liabilities: 2,400 Dr: Cash: 9,600 Cr: Gain or Loss on Derivatives: 12,000

d. Dr: Cash or Loss on Derivatives: 12,000 Cr: DerivativesFinancial Assets/Liabilities: 12,000