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4. On April 1, 2021, Bleta Corp purchases a call option for $500, which gives Beta the right to buy 1,000 shares of ABC Inc. for $30 each until December 1, 2021. ABC Inc. shares are currently trading for $30 On June 30, 2021, the options are trading at $4,800 and the shares at $32 each. On December 1, 2021, the options expire with no value. On December 1, 2021. Beta's entry would be a. No entry required b. Loss 2,000 Derivatives-Financial Assets c. Loss 2,000 4,300 Derivatives-Financial Assets d.Loss 4,300 4,800 Derivatives-Financial Assets 4,800

4. On April 1, 2021, Bleta Corp purchases a call option for $500, which gives Beta the right to buy 1,000 shares of ABC Inc. for $30 each until December 1, 2021. ABC Inc. shares are currently trading for $30 On June 30, 2021, the options are trading at $4,800 and the shares at $32 each. On December 1, 2021, the options expire with no value. On December 1, 2021. Beta's entry would be a. No entry required b. Loss 2,000 Derivatives-Financial Assets c. Loss 2,000 4,300 Derivatives-Financial Assets d.Loss 4,300 4,800 Derivatives-Financial Assets 4,800

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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4. On April 1, 2021, Bleta Corp purchases a call option for $500, which gives Beta the right to buy 1,000 shares of ABC Inc. for $30 each until December 1, 2021. ABC Inc. shares are currently trading for $30 On June 30, 2021, the options are trading at $4,800 and the shares at $32 each. On December 1, 2021, the options expire with no value. On December 1, 2021. Beta's entry would be a. No entry required b. Loss 2,000 Derivatives-Financial Assets c. Loss 2,000 4,300 Derivatives-Financial Assets d.Loss 4,300 4,800 Derivatives-Financial Assets 4,800
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