Accounting for Purchased Option Contract
{"Image DocumentName": "Accounting for Purchased Option Contract", "Image ImageDescription": "At inception. During life of contract. Closing position or at expiration. Dr Option Contract. Cr Gain on future contract. Dr Cash  Dr Gain on option contract. Cr Option Contract. Dr Option contract (asset) Cr Cash. or. Dr Loss on futures contract. Cr Option Contract. Dr Cash  Cr Loss on option contract. Cr Option Contract. (  assume expires in-the-money) Record payment of initial margin deposit. Adjust for fair value and record gain/loss. Close out and record net settlement of contract. Tan & Lee Chapter 9. \u00a92009.", "Image XResolution": "37", "Image YResolution": "37", "Image ResolutionUnit": "Pixels/Centimeter", "Image Software": "SlidePlayer", "Image YCbCrPositioning": "Centered"}