AFS put option

1 Jan, Entity A paid $20,000 to buy 10,000 shares at $2 per share. To hedge price risk, Entity A bought a put option at premium of $1,000. 31 dec, share price is at $1.50. The option is exercised. entity A continue to hold investment.

what should be the double entry for exercising the option?

Dr AFS $20,000
Cr Cash $20,000

Dr AFS (put option) $1,000
Cr Cash $1,000

Dr OCI $5,000
Cr AFS $5,000

Thank you.