David Plc acquired a parcel of 50 000 call options in Goliath Plc on 1 November 2012.The price of the options was €1.50 each and they may be exercised any time prior to 30 June 2015 at exercise price of €30.On the same date the market price for Goliath Ltd shares is €25.On David Plc's reporting period date - 30 June 2013 - the company is still holding the options.The market price of the options at that time was €1.80 each and the share price is €27. What is the financial effect of the above transactions on David Ltd's statement of comprehensive income for the year ending 30 June 2013?
A) Increase by €15 000
B) Decrease by €15 000
C) Increase by €100 000
D) Decrease by €100 000
Correct Answer:
Verified
Q47: The following journal entry pertains to
Q52: Prepayments are:
A) not financial instruments because they
Q53: In disclosing information about how a financial
Q57: Financial assets do not include:
A) cash.
B) notes
Q62: Documentation that constitutes a financial instrument as
Q64: Which of the following items is not
Q67: The classification of a preference share as
Q70: The risks arising from financial instruments are
Q72: The amortised cost of a financial asset
Q78: Which of the following financial instruments can
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents