On January 31 of This Year,Mallory Pays $800 for an Option

question 36

Multiple Choice

On January 31 of this year,Mallory pays $800 for an option to acquire 100 shares of Mesa Corporation common stock for $85 per share.As a result of an increase in the market value of the Mesa stock,the market price of the option increases and Mallory sells the option for $1,000 on August 4.As a result of the sale,Mallory must recognize

• A)$200 STCG.
• B)$800 STCG.
• C)$200 ordinary income.
• D)$800 ordinary income.

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Definitions:

Withdrawn

A state or behavior characterized by a desire to avoid social interactions and activities, often due to anxiety or depression.

Lonely

Sad because one has no friends or company.

Internet Danger

Risks associated with online activities, such as privacy breaches, cyberbullying, or exposure to inappropriate content.

Sexting

The act of sending sexually explicit photographs or messages via mobile phone or other digital devices.