LEAPS Are Typically

question 21

Multiple Choice

LEAPS are typically:

• A) more expensive than short-term options.
• B) cheaper than short-term options.
• C) only available for major indexes, not individual stocks.
• D) long-term options, with maturities between 5 and 10 years.

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Definitions:

Regulations

Rules or directives made and maintained by an authority to regulate behavior, typically in the areas of finance, health, safety, or the environment.

Tax Authority

A governmental entity responsible for the administration of taxes, including collection, enforcement, and interpretation of tax laws.

Legislative

Pertaining to the branch of government responsible for creating laws.

Private Letter Rulings

Issued by the IRS, these are written decisions provided to taxpayers, offering guidance on the tax treatment of complex transactions.