Put Options – Journal Questions

Journal Questions For each of the following scenarios, prepare journal entries, general ledger, trial balance, income statement, and balance sheet. Long Put, Nonhedging—Functional Currency US$ Cloud Fund had the following trades in Sun in the options market through...

Put Options – Objective Questions

Objective Questions 1. If the put option is purchased for speculative trade, then the premium paid towards purchase is treated as a. Income. b. Expense. c. Gain. d. None of the above. 2. For put options, the premium received towards sale is treated as a. Income. b....

Put Options – Summary

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

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