What is caroline tax on transaction

Assignment Help Finance Basics
Reference no: EM132711547

Caroline pays 15% taxes on dividends and capital gains and 35% taxes on ordinary income. Three years ago, she purchased 100 shares of XYZ, Inc. for $70. In January, Caroline wrote a six month put option on the stock at an exercise price of $90 and received $500. Three days after the purchase, the price of XYZ dropped significantly and has not been above $80 since. The result is that the put buyer chose not to exercise her put. Ignoring commissions, What is Caroline's tax on this transaction ?

Reference no: EM132711547

Questions Cloud

Calculate the intrinsic value-time value : George bought a 6-month naked put option on XYZ with a strike of $50 and the shares are trading at $48.50, the price of the option was $4.25.
What is the discount rate per annum : Brooke has just purchased a bank accepted bill with 180 days to maturity at the price of $48,500. The bank accepted bill has a face value of $50,000.
Find what is value of ending inventory using full costing : During the year, Ceradyne produces 48,500 snow shovels and sells 43,490 snow shovels. What is the value of ending inventory using full costing?
Does Paula have legal claims against Capstone Corporation : Does Paula have any legal claims against Capstone Corporation? What about Paula's actions? Does Paula have a contract with Freddy to purchase the car
What is caroline tax on transaction : The result is that the put buyer chose not to exercise her put. Ignoring commissions, What is Caroline's tax on this transaction?
Describe how the pathology of the health condition : Describe how the pathology of the health condition causes a homeostatic imbalance in the system.
What are the importance of management accounting : What are the importance of management accounting in Global Economy, Domestic Economy, E-Business, Supply Chain and Technology
What are the companies in the pharmaceuticals sector : What are the companies in the pharmaceuticals sector? What are the companies in the pharmaceuticals sector?
Why was this discovery surprising : What is the etiologic agent of this disease and why was this discovery surprising? What are the preventive and curative methods to treat this disease?

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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