On July 5, 2020, Alpha Corp

On July 5, 2020, Alpha Corp. purchased a call option for $ 2,400, giving it the right to buy 2,000 shares of Omega Corp. for $ 20 per share. On August 18, 2020, when the option value is $ 12,000, Omega settles the option for cash. The entry on Alpha's books to record the settlement is

$\begin{array}{ll} A)\text{Cash ............................................................ } & \quad\text{\ 12,000 \quad \quad \quad } \\\quad\quad\text{Derivatives - Financial Assets/Liabilities.......................} & \quad \quad\quad\quad\quad \quad \text{\ 2,400 \quad \quad\quad\quad \quad } \\\quad\quad\text{Gain or Loss on Der ivatives ..........................................} & \quad \quad\quad\quad\quad \quad \text{\ 9,600 \quad \quad\quad\quad \quad } \\ B) \text{ Cash .............................................................} & \quad \text{\ 12,000 \quad \quad \quad } \\ \quad\quad \text{ Gain or Loss on Der ivatives ..................................................} & \quad \quad\quad\quad\quad\quad {\text { 12,000 }}{}\\C) \text{Cash or Loss on Derivatives.....................................................} & \quad \text{\ 12,000 \quad \quad \quad } \\ \quad\quad\text{Derivatives-Financial Assets/Liabilities ......................................} & \quad \quad \quad \quad \quad\quad \text{\ 12,000 \quad \quad \quad } \\D) \text{Derivatives-Financial Assets/Liabilities ...................................... } & \quad \text{\ 2,400 \quad \quad \quad } \\\quad\text{Cash .......................................................................................} & \quad \text{\ 9,600 \quad \quad \quad } \\ \quad\quad\text{Gain or Loss on Der ivatives ........................................................ } & \quad \quad \quad \quad \quad\quad \text{\ 12,000 \quad \quad \quad } \\ \ \end{array}$