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In mid-September, Bubba sells one XYZ February 50 call at $6. It subsequently expires without being exercised.
How is the premium taxed?
A. the $600 premium constitutes ordinary income
B. the $600 premium is rolled over into another XYZ call with the next longest expiration date
C. Bubba's cost of the underlying stock is reduced
D. the $600 premium is a capital gain
Answer: D
Explanation:
Explanation/Reference:
Explanation: the $600 premium is capital gain. That's simply how the tax law works.

NEW QUESTION: 2
A corporate environment includes Exchange Server 2010 SP1. Client computers run Microsoft Outlook 2010 using Standard Client Access Licenses (CALs).
You need to recommend a solution that allows long-term message archival and minimizes hardware costs.
Which two actions should you recommend? (Each correct answer presents part of the solution. Choose two.)
A. Apply a retention policy tag to each mailbox.
B. Acquire an Enterprise CAL for each user.
C. Create a retention policy tag and set the age limit for retention.
D. Utilize personal archives that are stored in a cloud-based Exchange Server 2010 SP1 environment.
Answer: B,D

NEW QUESTION: 3
Health plans' use of the Internet to provide plan members with health-related information has grown rapidly in recent years. One advantage the Internet has over other forms of communication is that
A. users can access the Internet using a number of different types of computer systems
B. access to the Internet is available only to members of the health plan's network
C. users can contact a single controlling organization to rectify disruptions in Internet service
D. the Internet is immune to internal security breaches by employees or trading partners within the network
Answer: A


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