A customer buys 100 shares of abc at 56.50 and writes 1 abc aug 60 call at 2. if the call is exercised, the consequences are:________

The original cost of a piece of property, as modified through depreciation, is referred to as the basis in American tax law. When a piece of property is sold, the taxpayer must pay taxes on the capital gain, which is the sale price less the basis of the sold item.

How do you calculate cost basis?

There are two methods for figuring out your cost basis per share: The new per-share cost basis ($10,000/2,000 = $5) is calculated by multiplying the initial investment amount ($10,000) by the new number of shares you own (2,000 shares).

What is Sales proceeds?

The total amount of service units (i.e., goods and services) that a company sells during a given time period is known as SALE PROCEEDS. The amounts sold multiplied by the sales price per unit over a specific time period are used to determine the sales revenues.

According to the given formation:

A customer buys 100 shares of abc at 56.50

writes 1 abc aug 60 call at 2

So,

the cost basic of share is = $56.50

sales proceeds at = $62

To know more about cost basis and sales proceeds visit:

https://brainly.com/question/15407032

#SPJ4

I understand that the question you are looking for is:

A customer buys 100 shares of ABC at 56.50 and writes 1 ABC Aug 60 call at 2. If the call is exercised, the consequences are (cost basis and proceeds)