Jacob Is a Landscape Architect Who Works Out of His

question 34

Essay

Jacob is a landscape architect who works out of his home. He wonders whether or not he will have nondeductible commuting expenses when he drives to the locations of his clients. Please comment.

Distinguish between the exercise price and the market price in option trading.

Understand the concepts of in the money, at the money, and out of the money options.

Distinguish between put and call options and their market behaviors.

Calculate the break-even price for option positions.