Corine Ltd,a Trader Bought a December Put Option for 10 $\begin{array}{l}\text { Dr Investment in options contract } &\$ 39500\\\text { Cr } \quad \text { Cash at Bank }&& \quad \$ 39500\end{array}$

Corine Ltd,a trader bought a December put option for 10 $100 000 10% treasury bonds at a premium of $3.95 on January 1,2010.Year end for Corine is 30 June when the price for a December put option for $100 000 10% treasury bonds is $3.50.
What was the initial journal entry to record the option?

A) $\begin{array}{l}\text { Dr Investment in options contract } &\$ 39500\\\text { Cr } \quad \text { Cash at Bank }&& \quad \$ 39500\end{array}$
B) $\begin{array}{l}\text { Dr Investment in options contract } &\$ 3950\\\text { Cr } \quad \text { Cash at Bank }&& \quad \$ 3950\end{array}$

C) $$\begin{array} {llc } \text { Dr } & \text { Cash at Bank } & \$ 39500 \\\mathrm { Cr }&\text { Investment in options contract } & &\$ 39500\end{array}$$

D) $$\begin{array} { c c c } \text { Dr } & \text { Cash at Bank } & \$ 3950 \\\text { Cr } & \text { Investment in options contract } && \$ 3950\end{array}$$