On February 14, 2011, Deepak Limited (DL) entered into a contract for buying two lot of call
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On February 14, 2011, Deepak Limited (DL) entered into a contract for buying two lot of call option with product series ‘CA, Tata Motors (1700), 1200, April 2011, 30’ and sold one lot of put option with product series ‘PA, Maruti Suzuki (800), 1450, April 2011, 40’. It also entered into a forward contract to buy 20,000 10% Bonds (series 2012) @ ₹ 102 per bond for settlement in two months. Show how these are to be recognized.
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i DL should recognize call option as a financial asset as it has the right to buy the shares o...View the full answer
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