Answer:
C) Buy a DFI call with an exercise price of 35.
Explanation:
A Call is a buy option of 100 shares, in this case, of DFI. It has an exercise price, that represents the number of comparison with the market price. If the market is lower than the exercise, the call expires without earnings (only the premium that is paid when you buy it). If the market is higher than exercise, then the profit is the differen between the two prices. So, if the customer is short with 100 shares (expecting a lowering of prices), but he believes that a near-term rally is going to happen, then he can buy this option, and cover his losses when the prices rise.
Answer:
The IRS requires employers to report wage and salary information for employees on Form W-2. Your W-2 also reports the amount of federal, state and other taxes withheld from your paycheck. As an employee, the information on your W-2 is extremely important when preparing your tax return.
Answer:
A. None of these.
Explanation:
Perry's capital gains taxes = $25,000 - $10,000 = %15,000 x 15%
both investments were held for periods longer than 1 year
Addition to Perry's ordinary income = $4,000 x 32%
since Perry only owned the investment for 8 months it is considered short term gain
For his entreprenevrial venture