Questions from General Investment

Q: Briefly describe the differences and similarities between stock-index options and

Briefly describe the differences and similarities between stock-index options and stock options. Do the same for foreign currency options and stock options.

Q: You were just notified that you will receive $100,000

You were just notified that you will receive $100,000 in two months from the estate of a deceased relative. You want to invest this money in safe, interest-bearing instruments, so you decide to purcha...

Q: Tori Reynolds has been an avid stock market investor for years.

Tori Reynolds has been an avid stock market investor for years. She manages her portfolio fairly aggressively and likes to short sell whenever the opportunity presents itself. Recently, she has become...

Q: A wealthy investor holds $500,000 worth of U.

A wealthy investor holds $500,000 worth of U.S. Treasury bonds. These bonds are currently being quoted at 105% of par. The investor is concerned, however, that rates are headed up over the next six mo...

Q: Stefani German, a 40-year-old woman, plans

Stefani German, a 40-year-old woman, plans to retire at age 65, and she wants to accumulate $500,000 over the next 25 years to supplement the retirement programs that are being funded by the federal g...

Q: During 2015, the Smiths and the Joneses both filed joint tax

During 2015, the Smiths and the Joneses both filed joint tax returns. For the tax year ended December 31, 2015, the Smiths’ taxable income was $130,000, and the Joneses had total taxable income of $65...

Q: Angel and Marie Perez own a small pool hall located in southern

Angel and Marie Perez own a small pool hall located in southern New Jersey. They enjoy running the business, which they have owned for nearly three years. Angel, a retired professional pool shooter, s...

Q: What benefits does an investment club offer the small investor? Would

What benefits does an investment club offer the small investor? Would you prefer to join a regular or an online club, and why?

Q: Jason and Kerri Consalvo, both in their 50s, have $

Jason and Kerri Consalvo, both in their 50s, have $50,000 to invest and plan to retire in 10 years. They are considering two investments. The first is a utility company common stock that costs $50 per...

Q: Mike and Julie Bedard are a working couple. They will file

Mike and Julie Bedard are a working couple. They will file a joint income tax return. This year, they have the following taxable income: 1. $125,000 from salary and wages (ordinary income) 2. $1,000 i...