Johanna places a combination trade as follows: she buys one share of vanhoutte long for $10.60 and at the same time she buys a call on vanhoutte that has an exercise price of $10.10 and a premium of $1.40.

what is the profit or loss on the two trades combined if at the time of expiration of the call option vanhoutte is trading at $12.70 per share?

assume that she gets out of her long position at the same time her option expires.

Tara incorporates her sole proprietorship, transferring it to newly formed black corporation. the assets transferred have an adjusted basis of $240,000 and a fair market value of $300,000. also transferred was $10,000 in liabilities, $1,000 of which was personal and the balance of $9,000 being business related. in return for these transfers, tara receives all of the stock in black corporation. a. black corporation has a basis of $241,000 in the property. b. black corporation has a basis of $240,000 in the property. c. tara’s basis in the black corporation stock is $241,000. d. tara’s basis in the black corporation stock is $249,000. e. none of the above.

For each example identify the most appropriate ctso

Brian has been working for a few years now and has saved a substantial amount of money. he now wants to invest 50 percent of his savings in a bank account where it will be locked for three years and gain interest. which type of bank account should brian open? a. savings account b. money market account c. checking account d. certificate of deposit