During 2014, Marvin Had the Following Transactions Marvin's AGI Is:
A

question 9

Short Answer

During 2014, Marvin had the following transactions:
$\begin{array}{lr}\text { Salary } & \$ 50,000 \\\text { Bank loan (proceeds used to buy personal auto) } & 10,000 \\\text { Alimony paid } & 12,000 \\\text { Child support paid } & 6,000 \\\text { Gift from aunt } & 20,000\end{array}$
Marvin's AGI is:
a. $\$ 32,000$
b. $\$ 38,000$ .
c. $\$ 44,000$ .
d. $\$ 56,000$ .
e. $\$ 64,000$

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Definitions:

European Option

A type of options contract that can only be exercised at the expiration date, not before.

Expiration Date

The date on which a contractual agreement, option, or financial instrument becomes invalid or requires renewal.

Exercise Price

The predetermined price at which an option contract can be executed.

Call Option

A financial contract giving the buyer the right, but not the obligation, to buy a stock, bond, commodity, or other asset at a specified price within a fixed time period.