Put Option & Call Option As Financial Derivatives (Expiring With No Intrinsic Value)

Accounting for put option (or call option) used in a financial derivative where the option expires with no intrinsic value, for a put option it has no intrinsic value when the market price (buy stock at) is greater than the strike price (sell stock at), for a call option it has no intrinsic value when the market price (sell stock at) is less than the strike price (buy stock at), the option is recorded at its purchase price & its reduced by its time value component & recognized as an unrealized holding loss as income, the intrinsic value of the option has no value as described above & there is no recognition of any unrealized gain or loss due to change in market price, the option is not exercised and it is left to expire, detailed accounting by Allen Mursau

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