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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 a capital gain
C. Bubba's cost of the underlying stock is reduced
D. the $600 premium is rolled over into another XYZ call with the next longest expiration date
Answer: B
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. Utilize personal archives that are stored in a cloud-based Exchange Server 2010 SP1 environment.
B. Create a retention policy tag and set the age limit for retention.
C. Apply a retention policy tag to each mailbox.
D. Acquire an Enterprise CAL for each user.
Answer: A,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. the Internet is immune to internal security breaches by employees or trading partners within the network
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. users can access the Internet using a number of different types of computer systems
Answer: D


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