Proslide Ltd is planning to hold a grass sliding competition and therefore needs to buy $1000$ litres of

biodegradable dishwashing liquid to make the slides slippery. The purchase is likely to place in July

$2024$ and is considered highly probable. Proslide Ltd is worried about the price increasing before

then, so on $10$ March $2024$ buys $1000$ call options for $$5$ each. Each call option allows Proslide Ltd

to buy $1$ litre of biodegradable dishwashing liquid for $$10$ and matures on $2$ July $2024.$ Proslide Ltd

marks$-$to$-$market its derivatives each year on its June $30$ balance date. Assume the options qualify

for hedging. The relevant dishwashing liquid and options prices are as below:

Required: Provide all the required journal entries to record the above events assuming Proslide Ltd

exercises its options on $2$ July $2024.$