Question
On March 1, 2025, Jensen Corp. purchased a call option on shares of YTV stock. The contract was for 100 shares at a strike price
On March 1, 2025, Jensen Corp. purchased a call option on shares of YTV stock. The contract was for 100 shares at a strike price of $100 per share, with an expiration date of May 31, 2025. The option contract premium was $50. On March 31, a market appraisal estimated the time value of the option to be $40. Jensen settled the option contract on May 10. Prices of YTV stock during the option period are provided below.
| March 1 | March 31 | May 10 | |
| Price of YTV stock: | $100 | $90 | $95 |
At what amount would Jensen report as the value of the call option in its March 31, 2025 balance sheet?
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Global Accounting Information Systems Ais For Developing Countries
Authors: Dr. Mawududur Rahman
1st Edition
1717133207, 978-1717133205
