Corine Ltd,a Trader Bought a December Put Option for 10 $$\$ 100000$$

question 12

Multiple Choice

Corine Ltd,a trader bought a December put option for 10 $100 000 10% treasury bonds at a premium of $3.95 on January 1,2010.Year end for Corine is 30 June when the price for a December put option for $$\$ 100000$$ 10% treasury bonds is $3.50.On 31 July 2010,Corine Ltd sold the option for $4.00.What are the journal entries to record this transaction?

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Definitions:

Six-sided Die

A common playing object used in games, featuring six faces numbered from 1 to 6.

Sample Space

Represents the set of all possible outcomes of a statistical experiment.

Tossed

Generally refers to the act of throwing something lightly or casually, but can also relate to generating random outcomes, such as flipping a coin.

Probability

The measure of the likelihood that an event will occur, quantified as a number between 0 and 1.