Problem: On August 1, 2023, WJB Ltd. purchased a call option from DDR Investments Corporation. The option gave WJB the right to buy 20,000 shares in a third company, MGL Ltd., at a price of $22.50 per share. On the day WJB purchased the option, MGL shares were trading at $22.50 each. WJB paid $900 for the options. On August 31, 2023, the MGL shares were trading at $44.50 each, and the options for MGL shares were trading at $30,500. On September 15, WJB settled the options in cash when the MGL shares were trading at $46.00 and the options were trading at $470,000.