Call Options – Summary

The accounting treatment of call options prima facie will depend upon the intention with which the call options are purchased—hedging or speculation (nonhedging). If the position is taken as a hedge against some other position, then the relevant accounting standards...

Call Options – Journal Questions

Journal Questions Mr. Berkowitz buys 1,000 equity call options of Normal Electricals for $4 per share for a strike price of $25 on June 12, expiry date being July 16. Brokerage is 0.25 percent and is settled on T + 2 basis. Pass necessary journal entries for the...

Please enrol me for the free email course

on Basics of Accounting for Financial Instruments

Join our mailing list to receive the latest news and updates from our team.

You have Successfully Subscribed!