Mr and Mrs

question 67

Multiple Choice

Mr. and Mrs. Jelk file a joint return. They provide 65% of the financial support for David, the 14-year old son of a friend who died three years ago. David lives in the home of his aunt Sarah, who provides 35% of his financial support. Which of the following statements is true?

• A)David is a qualifying child of the Jelks.
• B)If David earns less than $3,900 gross income this year, he is a qualifying child of the Jelks.
• C)If David earns less than $3,900 gross income this year, he is a qualifying relative of the Jelks.
• D)David is neither a qualifying child nor a qualifying relative of the Jelks.

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Definitions:

Call Premium

The additional amount above the exercise price that one must pay to purchase a call option.

Put Premium

The price that a put option buyer pays to acquire the right to sell a specified quantity of an asset at a predetermined price before the option expires.

Exotic Options

Non-standard options that have more complex features than common American or European options, often including different pay-off structures or the ability to trade on more unusual underlying assets.

Over-The-Counter Market

A decentralized market, without a central physical location, where participants trade securities directly between two parties.