David Ltd acquired a parcel of 50 000 call options in Goliath Ltd 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 Ltd's balance 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
E. None of the given answers

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The Answer of David Ltd acquired a parcel of 50 000 call options in Goliath Ltd 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 Ltd's balance 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
E. None of the given answers

David Ltd Acquired a Parcel of 50 000 Call Options