Partridge Plc Holds a Well-Diversified Portfolio of Shares with a Current

Partridge Plc holds a well-diversified portfolio of shares with a current market value on 1 April 2014 of €1 million.On this date Partridge Plc decides to hedge the portfolio by taking a sell position in 15 CAC 40 futures units.The French CAC 40 is 3130 on 1 April 2014.A unit contract in CAC 40 futures is priced based on the French CAC 40 and a price of €25.The futures broker requires a deposit of €80 000.On 30 June the French CAC 40 has fallen to 2980 and the value of the company's share portfolio has fallen to €950 000.What are the appropriate journal entries to record these events?

A) $$\begin{array}{l}1 \text { April } 2014\\\begin{array} { | c | l | r | r | } \hline \text { Dr } & \text { Deposit on SPl futures } & 80000 & \\\hline \mathrm { Cr } & \text { Cash at bank } & & 80000 \\\hline & & & \\\hline { 30 \text { June } 2014 } & & \\\hline \text { Dr } & \text { Loss on share portfolio } & 50000 & \\\hline \mathrm { Cr } & \text { Share portfolio } & & 50000 \\\hline & & & \\\hline \mathrm { Dr } & \text { Deposit held by broker } & 56250 & \\\hline \mathrm { Cr } & \text { Gain on futures contract } & & 56250 \\\hline\end{array}\end{array}$$
B) $$\begin{array}{l}1 \text { April } 2014\\\begin{array} { | c | l | r | r | } \hline \text { Dr } & \text { Futures receivable } & 1173750 & \\\hline \text { Dr } & \text { Deposit on SPI futures } & 80000 & \\\hline \mathrm { Cr } & \text { Futures payable } & & 1093750 \\\hline & & & \\\hline { 30 \text { June } 2014 } & & \\\hline \mathrm { Dr } & \text { Loss on share portfolio } & 50000 & \\\hline \mathrm { Cr } & \text { Share portfolio } & & 50000 \\\hline & & & \\\hline \mathrm { Dr } & \text { Futures receivable } & 56250 & \\\hline \mathrm { Cr } & \text { Gain on futures contract } & & 56250 \\\hline\end{array}\end{array}$$
C) $$\begin{array}{l}30 \text { June } 2014\\\begin{array} { | l | l | r | r | } \hline \mathrm { Dr } & \text { Futures receivable } & 56250 & \\\hline \mathrm { Cr } & \text { Gain on futures contract } & & 56250 \\\hline\end{array}\end{array}$$
D) $$\begin{array}{l}1 \text { April } 2014\\\begin{array} { | c | l | r | r | } \hline \text { Dr } & \text { Deposit on SPl futures } & 80000 & \\\hline \mathrm { Cr } & \text { Cash at bank } & & 80000 \\\hline { 30 \text { June } 2014 } & & \\\hline \mathrm { Dr } & \text { Loss on share portfolio } &50000 & \\\hline \mathrm { Cr } & \text { Share portfolio } & &50000 \\\hline & & & \\\hline \mathrm { Dr } & \text { Futures receivable } &56250 & \\ \hline \mathrm { Cr } & \text { Gain on futures contract } & & 56250\\\hline\end{array}\end{array}$$