Statement regarding option taxation

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Reference no: EM133060192

Which of the following is a correct statement regarding option taxation?

Group of answer choices

  • Options may be taxed as either short-term or long-term gains (or losses) only if they are uncovered trades.
  • Options may be taxed as either short-term or long-term gains (or losses) only if they are covered trades and the contract exercises.
  • Options are taxed a short-term capital gains (or losses)
  • Options may be taxed as either short-term or long-term gains (or losses) only if they are covered trades and the contract expires.

Reference no: EM133060192

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