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Other Fields Homework Help Finance Topic started by: ScienceForte on Mar 28, 2022



Title: Justin owns 400 shares of ORNG stock which he bought 10 months ago at $20 per share and has now ...
Post by: ScienceForte on Mar 28, 2022
Justin owns 400 shares of ORNG stock which he bought 10 months ago at $20 per share and has now risen to $35 per share.  He is afraid the stock price will fall before he has owned it for a full year, but wants to postpone realizing profits on the stock for several months, when it will become a long-term rather than short-term gain.  He can protect his profit and avoid the short-term capital gains rate by

▸ writing covered calls.

▸ writing puts.

▸ buying puts.

▸ buying calls.


Title: Justin owns 400 shares of ORNG stock which he bought 10 months ago at $20 per share and has now ...
Post by: duankong-fei on Mar 28, 2022
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