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Treatment of Premiums on options and initial margins on futures

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Treatment of Premiums on options and initial margins on futures

I would like to know how to treat the premium paid on options contracts and initial margins on futures positions. The fair value of the contracts would be 0 at inception but would the premium/margin be expensed to P/L or carried on SoFP as an asset?

August 25th 2017 AN ACCA USER 160 Points

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