Please use the following information to answer questions 4 and 5. On December 1 2009, Risk Taking Company bought a call option costing $100,000. The use of this derivative investment does not qualify for hedge accounting. It cannot be either a fair value or cash flow hedge. The call option gave the company the right to purchase 100,000 barrels of oil for $110 per barrel during March 2010. As of December 31, 2009 the call option had a value of $130,000. Risk Taking company liquidated the call option on March 15 2010 in exchange for $135,000.

4. Risk Taking Company will have a realized gain (loss) on March 15, 2010 for this call option of:

A. $0

B. $35,000

C. -$5,000

D. $5,000