4 Hedging & Taxes Flashcards by Brandy S | Brainscape

Q

Hedge

to protect

A

buy

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Q

Hedge

incom

A

sell

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Q

Hedge

means to

A

point the arrow in the other direction

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Q

Hedge

buy

A

buy = bull

arrow = bear

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Q

Hedge

sell

A

sell = bear

arrow = bull

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Q

Option Taxes

Expire

Close

Exercise

A

tax for gains & loss of premium

realized when expires

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Q

Option Taxes

Expire

Close

Exercise

A

taxed when close

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Q

Option Taxes

Expire

Close

Exercise

A

pay taxes on strike

+ or - premium

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