Question

If an investor who has owned FLB stock for two years buys 1 FLB Oct put, this will:________.a. end the holding period and cause any loss to be long term and any gain to be short term.b. end the holding period and cause any gain or loss to be long term. c. have no effect on the holding period.d. end the holding period and cause any gain or loss to be short term.

Answer 1

Answer: have no effect on the holding period.

Explanation:

If an investor who has owned FLB stock for two years buys 1 FLB Oct put, this will have no effect on the holding period.

This is because the stick was already held long term by the investor when the put was gotten, therefore there will be no impact on the holding period.