Blue,Inc.,receives Its Support from the Following Sources

question 82

Multiple Choice

Blue,Inc.,receives its support from the following sources.

Which of the following statements is correct?

• A)Blue, Inc., is a private foundation because it satisfies the external support test and fails the internal support test.
• B)Blue, Inc., is not a private foundation because it fails both the internal and external support tests.
• C)Blue, Inc., is a private foundation because it satisfies both the external support test and the internal support test.
• D)Blue, Inc., is not a private foundation because it satisfies both the external support test and the internal support test.
• E)None of the statements is true.

---

Definitions:

Straddles

An investment strategy that involves purchasing both a call and put option on the same asset with the same strike price and expiration date, used to bet on volatility without predicting direction.

Asian Call Option

A type of call option where the payoff depends on the average price of the underlying asset over a specified period rather than at maturity.

Underlying Asset

The financial asset upon which derivative contracts, such as options and futures, are based.

Exercise Price

The price at which the holder of an option can buy or sell the underlying security or commodity.