"A customer buys an equity LEAP contract on the first day that the option starts trading. If the contract expires "out the money," the customer will have a:"

Respuesta :

Answer:long term capital loss

Explanation:

The options to the question are:

a. short term capital gain

b. short term capital loss

c. long term capital gain

d. long term capital loss

LEAP options is an acronym for Long-term Equity Anticipation. It is an option contract which is said to expire at least a year from the purchase date. It should be noted that they are more affordable than stocks due to the fact that they are typically offered at an option contract price.

A customer buys an equity LEAP contract on the first day that the option starts trading. If the contract expires "out the money," the customer will have a long term capital loss.