Ken T. Ucky buys a municipal bond yielding 5.95%. Ken's marginal federal income tax rate is...

90.2K

Verified Solution

Question

Finance

Ken T. Ucky buys a municipal bond yielding 5.95%. Ken's marginalfederal income tax rate is 18.88%. If Ken receives $7,892.00 ininterest payments in 2014, how much (dollar amount) does Ken owe infederal income taxes for 2014 (related to the interestpayment)?
$0.00
$1,490.00
$469.57
$377.78
Question 261 pts
Wesley Consin owns 100 shares if WIN stock. Wes purchased thestock a year ago for $1 per share. The stock is currently sellingfor $4 per share. Wes decides to sell a call on WIN with a strikeprice of $4.00. The premium is $0.50. A month later, WIN stock isstill at $4 per share. The option expires without being exercised.How much (total) did Wes earn on this transaction (not countingfees / commissons)?
$0.00
$50.00
$300.00
$400.00
Question 271 pts
Duke B. Deville sees that WIN stock is trading at $90 per share.Duke writes (sells) a naked call on WIN with a strike price of$92.00. Duke collects a premium of $0.85 on the transaction. WIN'sstock price goes up to $110 per share by the expiration date of theoption. Calculate Duke's total gains/losses from thistransaction:
Duke gains $2,000.00 on the transaction
Duke gains $2,085.00 on the transaction
Duke loses $2,000.00 on the transaction
Duke loses $2,085.00 on the transaction
Duke loses $1,715.00 on the transaction
Question 281 pts
Ken T. Ucky believes that WIN will see a dramatic increase instock price in the near term. WIN is currently trading at $38 pershare. Ken believes that WIN will go as high as $40 per share. Kenbuys a call option on WIN with a strike price of $38.00. Thepremium Ken pays is $1.00. At expiration, WIN has not increasedit's share price (it turns out, WIN's stock was fundamentallyflawed, relying too much on the company's interior strengthcombined with a little flash and sizzle...their competitors,meanwhile, gained ground by being good overall companies and byfocusing on both external and internal things that reallymattered). WIN is still sitting at a price of $38.00. The optionexpires worthless. Instead of making a lot of money and enjoyinghis 'one shining moment,' how much money does Ken lose on thisbitter, bitter, unforeseeable, painful, and totally unforgettabletransaction?
$1.00
$100.00
$200.00
$3,800 and a place in history
$4,000 and immortalization in the 'hall of fame'

Answer & Explanation Solved by verified expert

4.2 Ratings (890 Votes)

Ken T Ucky buys a municipal bond yielding 595 Kens marginal federal income tax rate is 1888 If Ken receives 789200 in interest payments in 2014 how much dollar amount does Ken owe in federal income taxes for 2014 related to the interest payment The correct answer is the first option 000 Municipal bonds are tax exempted Question 261 pts Wesley Consin owns 100 shares if WIN stock Wes purchased the stock a year ago for 1 per share The stock is currently selling for See Answer

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member