On December 1,20X8,Winston Corporation Acquired 100 Shares of Linked Corporation

Multiple Choice

On December 1,20X8,Winston Corporation acquired 100 shares of Linked Corporation at a cost of $40 per share.Winston classifies them as available-for-sale securities.On this same date,it decides to hedge against a possible decline in the value of the securities by purchasing,at a cost of $250,an at-the-money put option to sell the 100 shares at $40 per share.The option expires on February 20,20X9.Selected information concerning the fair values of the investment and the options follow:
Assume that Winston exercises the put option and sells Linked shares on February 20,20X9.

-Based on the preceding information,which of the following journal entries will be made on February 20,20X9?

A) Option A
B) Option B
C) Option C
D) Option D