The Internal Revenue Service Allows You to Round Values to the Nearest

question 241

Multiple Choice

The Internal Revenue Service allows you to round values to the nearest dollar on your income tax return. If you entered a deduction of $247.53 rounded to the nearest dollar, what would you enter?

• A)$247.50
• B)$247
• C)$250
• D)$248

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Definitions:

Put

An option contract giving the owner the right, but not the obligation, to sell a specified amount of an underlying security at a specified price within a specified time.

Premium

The amount paid for an insurance policy or an amount paid above the nominal value for a security; also, the fees paid for an option contract.

Protective Put

Purchase of an asset combined with a put option on that asset to guarantee proceeds at least equal to the put’s exercise price.

Underlying Asset

The financial asset upon which a derivative instrument, such as a futures or options contract, is based.