Warren Co. purchased a put option on Echo common shares on Jan 7, 2020 for $360. The put option is for 100 shares, and the strike price is $85 (which equals the price of an Echo share on the purchase date). The following data are available with respect to the call option. Date Market price of Echo shares Time value of call option March 31, 2020 $80 $200 What is the net effect of these call options on Warren Co.s income before taxes? a. $340 b. $500 c. $160 d. ($500) e. $534