The Main Beneficiaries of the Deductions Left After the 1986

question 89

Multiple Choice

 The main beneficiaries of the deductions left after the 1986 tax reform act were 

• A) individuals. 
• B) universities. 
• C) insurance companies. 
• D) automakers. 
• E) All of these are correct.

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Definitions:

Put Option

A financial contract giving the holder the right to sell an asset at a specified price within a specific time.

Cash Flow Hedge

A cash flow hedge is a type of hedge that is used to manage exposure to variability in cash flows, particularly those related to forecasted transactions that could affect profit or loss.

Option Expense

The cost associated with granting stock options to employees or executives, which companies must expense in their financial statements.

Fair Value Hedge

A hedging strategy aimed at protecting against the risk of changes in the fair value of an asset, liability, or an identified portion of such, that is attributable to a particular risk.