Taking the data of Example 9, if on the expiry, i.e., on last Thursday April 28, 2011 premium is ₹75 and ₹8, respectively. Then accounting will be as follows:

Data from Example 9

Sachkhand Enterprises (SE) buys the following option contract on Feb. 4, 2011 from Naam Enterprises (NE):

(i) CA, RIL (300), April 2011, 1,050, @ ₹ 29.

(ii) PA, Tata Motor (500), April 2011, 1,250, @ ₹ 40. He makes the payment of premium for both the option contracts. On March 31, 2011 at the time of annual closing the premium for these options was ₹ 60 and ₹ 12, respectively. Show how accounting entry will be executed in the books of accounts.