Three six-month call options are traded on Digital Organics stock:

How would you make money by trading in Digital Organics options?

What is the value of an option on a risk-free asset? Specifically, consider a European put option with one year to expiration and strike price of $110 written on a one-year zero coupon bond with face value $100 and yield-to-maturity 2%. What will be the option premium today (P_0)? (After you answer this question, consider whether an option on a risky asset will have a higher or lower premium, all else equal.)

• A. It's P_0 = 110-100 = 10.
• B. It's P_0 = 110-100/1.02 = 12.
• C. It's P_0 = (110-100)/1.02 = 9.8.
• D. It's P_0 = 100-100/1.02 = 2.

Mrs. Giammo is a 59-year-old woman who was brought to the emergency department by her husband. Mr. Giammo noticed that all of a sudden his wife "was slurring her speech and her face was drooping on one side." Mrs. Giammo told her husband that she felt some numbness on the right side of her face and in her right arm. Mr. Giammo was afraid his wife was having a stroke so he brought her to the hospital.

Case Study

In the emergency department, Mrs. Giammo is alert and oriented. Her vital signs are temperature 98.28F (36.78C), blood pressure 148/97, pulse 81, and respiratory rate 14. An electrocardiogram (ECG, EKG) monitor shows a normal sinus rhythm. Mrs. Giammo is still complaining of "numbness" of the right side of her face and down her right arm. Her mouth is noted to divert to the right side with a slight facial droop when she smiles. Her speech is clear. She is able to move all of her extremities and follow commands. Her pupils are round, equal, and reactive to light (4 mm to 2 mm) and accommodation. There is no nystagmus noted. Her right hand grasp is weaker than her left. Mrs. Giammo does not have a headache and denies any nausea, vomiting, chest pain, diaphoresis, or visual complaints. She is not experiencing any significant weakness, has a steady gait, and is able to swallow without difficulty. Laboratory blood test results are as follows: white blood cell count (WBC) 8,000 cells/mm3, hemoglobin (Hgb) 14 g/dL, hematocrit (Hct) 44%, platelets = 294,000 mm3, erythrocyte sedimentation rate (ESR) 15 mm/hr, prothrombin time (PT) 12.9 seconds, international normalized ratio (INR) 1.10, sodium (Na2+) 149 mEq/L, potassium (K+) 4.5 mEq/L, glucose 105 mg/dL, calcium (Ca2+) 9.5 mg/dL, blood urea nitrogen (BUN) 15 mg/dL, and creatinine (creat) 0.8 mg/dL. A head computed tomography (CT) scan is done which shows no acute intracranial change and a magnetic resonance imagery (MRI) is within normal limits. Mrs. Giammo is started on an intravenous heparin drip of 25,000 units in 500 cc of D5W at 18 mL per hour (900 units per hour). Mrs. Giammo is admitted for a neurology evaluation, magnetic resonance angiography (MRA) of the brain, a fasting serum cholesterol, and blood pressure monitoring. Upon admission to the nursing unit, her symptoms have resolved. There is no facial asymmetry and her complaint of numbness has subsided.

Questions

The neurologist's consult report states, "At no time during the episode of numbness did the client ever develop any scotoma, amaurosis, ataxia, or diplopia." Explain what these terms mean.

Discuss the pathophysiology of a transient ischemic attack (TIA). Include in your discussion what causes a TIA and the natural course of a TIA.

Mrs. Giammo asks, "How is what I had different from a stroke?" Provide a simple explanation of how a transient ischemic attack (TIA) differs from a cerebrovascular accident (CVA, stroke).

Discuss the defining characteristics of a transient ischemic attack (TIA).

In June 2019, Kim filed for divorce from her husband, Eric. Although they lived apart for the last six months of the year, their divorce ios not yet finalized; they are still legally maried. Kim does not wish to file a joint 2019 return. she has no qualifying relative or qualifying relative. What filing status should kim use?.

a, HH

b MFS

c S

D Unmarried for tax purposes.

A grey area perhaps!

Mrs. Brown is a 61 year old lady who lives at home with her husband. She has a history of hypertension that is controlled with medication. Mrs. Brown was walking through her home and tripped on the corner of one of her area rugs resulting in a fall with complaints of right hip pain. Her husband called an ambulance and Mrs. Brown was transferred to hospital. In the emergency department she was diagnosed with a minor pelvis fracture. She was admitted to the orthopedic floor for pain management, physiotherapy and monitoring.

Mrs. Brown is complaining about extensive pain, outline the pain assessment that you will perform with Mrs. Brown including the assessment tool that you will use. Research pelvic fractures and outline pharmacological and non-pharmacological interventions to assist with her pain.

Outline the health teaching that you will provide to Mrs. Brown before discharge to prevent falls within the home. It is important to note that she will most likely need the assistance of a mobility device

Mrs. Brown requires assistance when she goes home and you decide that she needs a home care referral. Outline the care and multi-disciplinary team that would be of assistance to Mrs. Brown in her home.

1. Elijah and Anastasia are husband and wife who have one married children and twelve minor grandchildren.

For 2018, what is the maximum amount they can give to their family (including the sons- and daughters-in-law) without using any of their unified transfer tax credit?

2. Isabella files her income tax return 90 days after the due date of the return without obtaining an extension from the IRS. Along with the return, she remits a check for $146,000, which is the balance of the tax she owes.

Note: Assume 30 days in a month.

Disregarding the interest element, enter Isabella's penalty amount for each, failure to file and failure to pay.

Linda’s husband dies, naming her the sole beneficiary of a $500,000 life insurance policy. The insurance company informs her that she has two options: (1) she can receive the entire $500,000 in one lump-sum payment or (2) she can receive annual installments of $58,000 for 10 years

a. How much does Linda include in gross income if she takes the lump- sum payment?

b. How much does Linda include in gross income each year if she elects the installment payments?

.

Daniel B. Butler and Freida C. Butler, husband and wife, file a joint return. The Butlers live at 625 Oak Street in Corbin, KY 40701. Dan's Social Security number is 111-11-1112, and Freida's is 123-45-6780. Dan was born on January 15, 1967, and Freida was born on August 20, 1968.

During 2018, Dan and Freida furnished over half of the total support of each of the following individuals, all of whom still live at home:

1. Gina, their daughter, age 22, a full-time student, who married on December 21, 2018, has no income of her own and for 2018 did not file a joint return with her husband, Casey, who earned $10,600 during 2018. Gina's Social Security number is 123-45-6788.
2. Willie, their son, age 20, who had gross income of $6,300 in 2018, dropped out of college in October 2018. He had graduated from high school in May 2018. Willie's Social Security number is 123-45-6787.
3. Ben, their oldest son, age 26, is a full-time graduate student with gross income of $5,200. Ben's Social Security number is 123-45-6786.

Dan was employed as a manager by WJJJ, Inc. (employer identification number 11-1111111, 604 Franklin Street, Corbin, KY 40702), and Freida was employed as a salesperson for Corbin Realty, Inc. (employer identification number 98-7654321, 899 Central Street, Corbin, Ky 40701). Selected information from the W–2 Forms provided by the employers is presented below. Dan and Freida use the cash method.

Freida sold a house on December 30, 2018, and will be paid a commission of $3,100 (not included in the $86,000 reported on the W–2) on the January 10, 2019, closing date.

Other income (as reported on 1099 Forms) for 2018 consisted of the following:

The $382 from First Bank was original issue discount. Dan and Freida collected $16,000 on the First Bank CD that matured on September 30, 2018. The CD was purchased on October 1, 2016, for $14,995, and the yield to maturity was 3.3%.

Dan participated on a game show and won a cash prize of $7,000.

In addition to the above information, Dan and Freida's itemized deductions included the following:

Sales tax from the sales tax table is $1,860. Dan and Freida made Federal estimated tax payments of $8,000. All members of the family had health insurance coverage for all of 2018. Dan and Freida do not wish to contribute to the Presidential Election Campaign. The Kentucky income tax rate is 4%.

Required:

Compute Dan and Freida’s 2018 Federal income tax payable (or refund due). Use Form 1040 and Schedules 1, 5, B, E and the Qualified Dividends and Capital Gain Tax Worksheet to complete this tax return. If there is a tax overpayment, the Butlers would like a refund. If additional tax is due, assume no underpayment penalty applies.

It may be necessary to complete the tax schedules before completing Form 1040.