Which time ben pays $1,000 for the call option

Reference no: EM133611111

Question: Ben Inc. uses oil to operate its machines (fuel expense). Ben enters into a call option contract with Holly Investment Co. on November 1, 2023. This contract gives Ben the option to purchase 1,000 barrels of oil at $100 per barrel on January 1, 2024, which the 1,000 barrels will be used for operation in January. One barrel of oil is trading at $100 on November 1, 2023, at which time Ben pays $1,000 for the call option.

Reference no: EM133611111

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