Question: On January 2 , 2 0 2 3 , Cullumber Corporation purchased a call option for $ 3 4 0 on Walter Inc's common shares.

On January 2,2023, Cullumber Corporation purchased a call option for $340 on Walter Inc's common shares. The call option gives Cullumber the option to buy 980 shares of Walter at a strike price of $26 per share ary time during the next six months. The market price of a Walter share was $26 on January 2,2023 the intrinsic value was therefore $00. On March 31,2023, the markel price for Walter stock was $37 per share, and the fair value of the option was $16,200.
On January 2 , 2 0 2 3 , Cullumber Corporation

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