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Question 2 Mr. Investor buys a stock option of ABC Co. Ltd. in July, 2003 with a strike price on 30.07.2003 of 7 250 to
Question 2 Mr. Investor buys a stock option of ABC Co. Ltd. in July, 2003 with a strike price on 30.07.2003 of 7 250 to be expired on 30.08.2004. The premium is 720 per unit and the market lot is 100. The margin to be paid is 7120 per unit Show the accounting treatment in the books of Buyer when: @ the option is settled by delivery of the asset, and (b) the option is settled in cash and the index price is 260 per unit
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