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Question 19 Output Area: You only get the dividend if you own the stock. The dividend would increase the return on your stock investment
Question 19 Output Area: You only get the dividend if you own the stock. The dividend would increase the return on your stock investment by the amount of the dividend yield, $.80/$40 = .020, or 2.0%, but it would have no effect on your option investment. This question illustrates that an important difference between owning the stock and the option is that you only get the dividend if you own the stock.
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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