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XYZ Inc has purchased 254 call options on the shares of ABC Corp with each option giving XYZ Inc the right to buy one ABC

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XYZ Inc has purchased 254 call options on the shares of ABC Corp with each option giving XYZ Inc the right to buy one ABC Corp common share at a strike price of $80.50 per share. XYZ paid $2.61 for each option. Two months later, on the next financial reporting date, the market value of each option is $8.03 per option, while each ABC Corp share is trading at $87.59 per share. If XYZ exercises all the options immediately after this financial reporting date, what will be the resulting balance of the 'Investment in ABC Corp Shares' account assuming XYZ doesn't sell the shares just acquired? Ignore any commissions. $21,362 $21,924 $22,487 $23,049 $23,611

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