As a General Rule: I

question 48

Multiple Choice

As a general rule: I.Income from property is taxed to the person who owns the property.II.Income from services is taxed to the person who earns the income.III.The assignee of income from property must pay tax on the income.
IV) The person who receives the benefit of the income must pay the tax on the income.

• A)Only I and II are true.
• B)Only III and IV are true.
• C)I, II, and III are true, but IV is false.
• D)I, II, III, and IV are true.
• E)None of these is true.

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Definitions:

Options Exercised

The act of implementing the right to buy (call option) or sell (put option) an underlying asset at a predetermined price before the option expires.

Horizontal Spread

An options strategy involving the purchase and sale of two options of the same type and expiration date but different strike prices.

Call

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

Strategy

A plan of action designed to achieve a long-term or overall aim.