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NEW QUESTION: 1
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 is rolled over into another XYZ call with the next longest expiration date
B. the $600 premium constitutes ordinary income
C. the $600 premium is a capital gain
D. Bubba's cost of the underlying stock is reduced
Answer: C
Explanation:
Explanation/Reference:
Explanation: the $600 premium is capital gain. That's simply how the tax law works.

NEW QUESTION: 2

A. Option B
B. Option D
C. Option A
D. Option C
Answer: C

NEW QUESTION: 3

0x9D876A3468B911ElBA4CFCBF4724019B'.



A. Option D
B. Option C
C. Option A
D. Option B
Answer: D