Ice Shave Entity writes a put option on Dec 31, 20x1 to purchase 5000 shares in exchange
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Ice Shave Entity writes a put option on Dec 31, 20x1 to purchase 5000 shares in exchange for a $5,000 premium. Under the contract, Ice Shave may be required to purchase $100,000 of its own shares two years from now (PV of 82,645). The contract may be settled only under gross physical delivery method. Record all the necessary journal entries.
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Solution Journal Entries Amounts N Particulars Put options Cash 31 So00 S... View the full answer
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