On April 1, 2017, Gamma Corp

question 24

Short Answer

On April 1, 2017, Gamma Corp.purchases a call option for $500, which gives Gamma the right to buy 1,000 shares of Delta Inc.for $30 each until December 1, 2017.Delta Inc.shares are currently trading for $30.At June 30, 2017, the options are trading at $4,800 and the shares at $32 each.At December 1, 2017, the options expire with no value.The entry to record the purchase of the call option is
D)No entry required.

---

Definitions:

Drug Abuse

The habitual taking of addictive or illegal drugs in a manner that leads to a range of social, emotional, and physical problems.

Behavior Therapy

A type of psychotherapy that aims to change potentially self-destructive or unhealthy behaviors through conditioning techniques.

Gestalt Therapy

A form of psychotherapy that emphasizes personal responsibility and focuses on the individual's experience in the present moment, the therapist-client relationship, the environmental and social contexts of a person’s life, and the self-regulating adjustments people make as a result of their overall situation.

Consumer Reports

An independent organization that evaluates and reports on the quality and safety of products and services.