Taxation
The higher the investors tax bracket the more appropriate this investment vehicle becomes
Municipal Securities
Profiting from convertible bond arbitrage requires complex hedging strategies and management of numerous risk exposures, including interest rate, market volatility, and credit risk. This entity would frequently employ complex arbitrage strategies
Hedge Fund
$7,000
A butterfly spread is a type of spread that combines bullish and bearish option strategies with fixed risk. It is made of this number of options contracts
Four
This star studded 2006 film set in Indiana follows RJ (Bruce Willis) who is forced to deliver food to Vincent (Nick Nolte) after accidentally destroying his stockpile.
Over the Hedge
The death benefit of a life insurance policy is not taxable when paid to a named beneficiary. However, a death benefit paid to this entity is taxable
Insured's Estate
These two options positions hedge a long stock and short stock position respectively
Long Put - Long Call
ERISA applies to retirement plans in this sector only
Private
If spot rates for foreign currencies increase, the premium on foreign currency puts
Decrease
This country (1 of 3 enclaved states) is home to The Maseru Securities Exchange founded in 2016
Lesotho
Non-taxable
These (often used for a short term) securities used by investors in a bearish market when there is an expectation of price decline or to hedge the downside risk of a portfolio
Inverse ETF
The 2024 maximum employee contribution limit for 401(k) accounts
$23,000
The investor is short volatility in this two position play
Short Straddle
This Roman speculator and jurist is cited as one of the earliest dealers of annuities, also credited with creating the first actuarial life table
Gnaeus Domitius Annius Ulpianus
Surrendering an annuity contract before age 59½ without reinvestment into another contract results in ordinary income tax plus this
10% on appreciation
To properly hedge a portfolio that is more volatile than the market, the number of index options contracts must be adjusted. This adjustment is based on this measure
Beta
Each parent is able to withdrawal this dollar amount to assist with the expenses after the birth or adoption of a child
$5,000
A “married put” occurs when an investor buys
A stock and on the same day buys a put option on that stock as a hedge
The Social Security Act of 1935 guaranteed a retirement age of 65. In the 1960s an option to retire at 62 was introduced for this reduced benefit percentage
80% (20% reduction of benefits)
Paper profits generate this tax consequence
None
Investors who believe interest rates will fall, or need to hedge against falling rates will open these options positions
Buy Interest Rate Puts or Sell Interest Rate Calls
403(b) plans that are invested exclusively in annuities are called this
Tax-Sheltered Annuities (TSAs)
A synthetic long stock position is created by purchasing these
Buying calls and selling puts together on the same underlying security
Ah, foolish traveler!! Thisss bond callsss upon the people'ss gold and the land'ssssssss faith! But tread carefully, for it's not the people who pay my bridge toll, only the taxman'ssss touch will linger!
GO Bond