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question C I am not sure how to find properly. On January 2, Starz inc, established an agreement with Silver Co, allowing Starz Inc. to

question C I am not sure how to find properly. image text in transcribed
On January 2, Starz inc, established an agreement with Silver Co, allowing Starz Inc. to call 100 shares of Gold Inc. stock at a strike price of $45 per share through June 30 of the following year. On January 2 , the current market price of Gold Inc. is $45 and the option premium is $200. On June 30 , the fair value of the option is $900. Required a. Prepare the journal entry on January 2 to record the purchase of the call option. b. Prepare the entry to adjust the call option to fair value on June 30. c. At what price per share of Gold Inc. will the call option become valuable to Starz Inc.? - Note: Round your answer to the nearest penny

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