On November 30, 2020, ABC Inc made the following journal entry to record the exercise of a call option it purchased on May 1, 2020 for $4,500, which gave it a right to purchase shares of Baltic Inc. for $8 each until December 31, 2020. The fair value of the call option was last updated on October 31, 2020.

November 30, 2020:

Investment- Baltic Inc. Common Shares DR....$100,000

Derivative - Call Option CR....$18,000

Cash CR....$64,000

Gain on Derivative-Call Options CR....$18,000

1) The market value of Baltic shares on November 30, 2020, the number of shares purchased, the total overall profit or loss from the call option and the fair value of the call option on October 31, 2020 were, respectively:

a. $10.00 per share; 10,000 shares; $31,500 gain; $18,000 call option value Oct. 31, 2020.

b. $10.00 per share; 10,000 shares; $18,000 gain; $18,000 call option value Oct. 31, 2020.

c. $12.50 per share; 8,000 shares; $36,000 gain; $36,000 call option value Oct. 31, 2020.

d. $12.50 per share; 8,000 shares; $31,500 gain; $18,000 call option value Oct. 31, 2020.

e. None of the above.

2) Assuming the same facts in Question 32 above, how much would ABC Inc. have asked for as a cash settlement of the call option on November 30, 2020 had they decided not to take delivery of the Baltic Inc. shares?

a.$100,000.

b.$36,000

c.$31,500.

d. $64,000.

e. None of the above.