If an Individual with a Marginal Tax Rate of 39

question 72

Multiple Choice

If an individual with a marginal tax rate of 39.6% has a long-term capital gain,it is taxed at

• A)0%.
• B)20%.
• C)10%.
• D)15%.

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Definitions:

Call Option

A financial contract that gives the buyer the right, but not the obligation, to buy a specified quantity of an asset at a set price within a specified time.

Strike Price

The rate at which an option's owner has the right to purchase (for a call option) or offload (for a put option) the underlying asset or commodity.

Market Price

The current price at which an asset or service can be bought or sold.

Put Option

A financial derivative that gives the holder the right, but not the obligation, to sell a specified quantity of an underlying asset at a set price within a specified time.