Taxable gain and tax due

Assignment Help HR Management
Reference no: EM13979445

1. Suppose a stock is priced at $30 and an eight-month call on the stock with an ex- ercise price of $25 is priced at $6. Compute the taxable gain and tax due for each of the following cases, assuming that your tax bracket is 28 percent. Assume 100 shares and 100 calls.

a. You buy the call. Four months later, the stock is at $28 and the call is at $4.50. You then sell the call.

b. You buy the call. Three months later, the stock is at $31 and the call is at $6.50. You then sell the call.

c. You buy the call. At expiration, the stock is at $32. You exercise the call and sell the stock a month later for $35.

d. You buy the stock and write the call. You hold the position until expiration, whereupon the stock is at $28.

e. You write the call. Two months later, the stock is at $28 and the call is at $3.50. You buy back the call.

Reference no: EM13979445

Questions Cloud

List and describe ten possible review areas that auditors : List and describe 10 possible review areas that auditors may be involved in during the development process.
Calculate the owner equity : Use the following financial information to calculate the owner's equity and prepare a balance sheet with vertical analysis as of December 31, 2008, for Mountain Magic Tire Company,
Inflation and interest rates : You're considering an investment that you expect will produce an 8 percent return next year, and you expect that your real rate of return on this investment will be 6 percent. What do you expect inflation to be next year?
Calculate u at the equilibrium bond length : Using L-J potential U= KA/ a6 + KR/ a12. For Ar KA = 1.037 x10-11 J.m6 and KR = 1.616 x10-134 J.m12. Calculate the equilibrium bond length for Ar.
Taxable gain and tax due : 1. Suppose a stock is priced at $30 and an eight-month call on the stock with an ex- ercise price of $25 is priced at $6. Compute the taxable gain and tax due for each of the following cases, assuming that your tax bracket is 28 percent. Assume 10..
Descriptions of confidence intervals is correct : Which of the following descriptions of confidence intervals is correct? (Select all that apply). When conducting a hypothesis test, which one of the following p-values would you feel most confident to reject the null hypothesis
Describe the different test events : Describe the different test events and what aspects of the system are covered during each event.
Calculate the common financial ratios : Using only annual numbers, please calculate the common financial ratios found in table 3.5 in the textbook for these companies(Look at the attached slide# 11). What do these ratios mean? Are the ratios similar for all of the companies?
What is the electric field at a point in the cavity : What is the electric field at a point in the cavity, a distance r = 1.50 cm from the center? What is the electric potential at r = 5.00 cm from the center? Find the potential at r = 1.50 cm from the center.

Reviews

Write a Review

 

HR Management Questions & Answers

  Effect a fair and generous benefits package

Now that you have studied a total rewards system, determine what effect a fair and generous benefits package and pay for performance could have on employee morale, productivity, and communication.

  Ikea policy and business practice case study

IKEA policy and business practice case study - What is the case about and Summarize IKEA HR policies

  Bob files a suit against eagle tools inc the manufacturer

bob is shopping in carls hardware store when a nail gun in use by dan one of carls employees fires without warning and

  Balanced scorecards and performance managementprovide a

balanced scorecards and performance managementprovide a brief description of the organization in which you are familiar

  Job analysis to create the job description

In your role as the Human Resource Manager at Epic Health Solutions, you need to decide what job analysis method to use for the new position that is being created. Then you will do a brief job analysis to create the job description. In a 2-3 page ..

  Define international hr functions in industry

Explain the priorities for designing an HR function in your industry of study and this is the baseline for any company in your industry doing business anywhere in the world

  Organization and management of a health care facility

Your duties at 21st Century Solutions Health Care Hospital require you to interface with many different professionals, including physicians, nurses, and allied professionals in various areas of health care.

  Explain the importance of a csr program for an organization

Explain the importance of a CSR program for an organization

  Explain some key elements to assessing a domestic culture

explain some key elements to assessing a domestic culture? what are some keys to assessing a foreign culture? how does

  Pto system and traditional leave system

Identify any additional information you would need to recommend a solution, and explain where you would likely find that information and discuss any issues you would likely encounter if you were to merge the PTO system to a traditional leave system. ..

  How to figure out employee pay

Show the considerations that must be made in evaluate whether an organization should pay employees more than, less than, or equal to the market rate.

  Leading into the future project

The purpose of the ‘Leading Into the Future Project' is to get you actively engaged in integrating your learning in the course with your career - and community improvement. The project should provide you with great opportunities to get school cred..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd