1. Which of the following choices is the most beneficial tax consequence to an individual when computing his federal tax liability?

a. Depreciation

b. Depletion

c. Recapture

d. Tax credits

2. In August, an investor sells an uncovered listed option and receives a $600 premium. The following February, the customer makes a closing purchase transaction at 5. The result of the transaction is:

a. A capital gain of $100

b. Ordinary income of $100

c. A capital loss of $100

d. Not taxabl

3. When determining position and exercise limits for a listed equity option, which TWO of the following positions are considered to be on the same side of the market?

I. Long calls and long puts

II. Long calls and short puts

III. Short calls and short puts

IV. Short calls and long puts

a. I and III

b. I and IV

c. II and III

d. II and IV