The Quick-time Company stock is currently selling for $32. There is a put option on the stock rith an exercise price of $29 with 6 months to maturity. The risk free rate is 2% and the ariance is .0625. A What is the value of the put? Provide all your calculations for components (N(-d1), etc.) B. What is the value of the call using Put-Call parity? C. If Light-Step paid a dividend of $0.75 per share what would be the value of the put?

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Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.