Basket Ltd acquired a parcel of 50 000 call options in Snake and Asp Ltd on 1 November 2014.The price of the options was $0.40 each and they may be exercised any time prior to 30 June 2016.The exercise price is $30.On Basket Ltd's balance date - 30 June 2016 - the company is still holding the options.The market price of the options at that time was $0.39 each and the price of Snake and Asp Ltd shares had risen to $28 having previously fallen to $15.What are the entries required to record the purchase of the options and the likely action of Basket Ltd?

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The Answer of Basket Ltd acquired a parcel of 50 000 call options in Snake and Asp Ltd on 1 November 2014.The price of the options was $0.40 each and they may be exercised any time prior to 30 June 2016.The exercise price is $30.On Basket Ltd's balance date - 30 June 2016 - the company is still holding the options.The market price of the options at that time was $0.39 each and the price of Snake and Asp Ltd shares had risen to $28 having previously fallen to $15.What are the entries required to record the purchase of the options and the likely action of Basket Ltd?

Basket Ltd Acquired a Parcel of 50 000 Call Options