Linda Babeu, who is in a 33% ordinary tax bracket (federal and state combined) and pays a

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Linda Babeu, who is in a 33% ordinary tax bracket (federal and state combined) and pays a 15% capital gains rate on dividends and capital gains for holding periods longer than 12 months, purchased 10 options contracts for a total cost of $4,000 just over 1 year ago. Linda netted $4,700 upon the sale of the 10 contracts today. What are Linda’s pretax and after-tax HPRs on this transaction?
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Fundamentals of Investing

ISBN: 978-0133075359

12th edition

Authors: Scott B. Smart, Lawrence J. Gitman, Michael D. Joehnk

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