Assume That You Have Just Sold a Stock for a Loss

question 80

Multiple Choice

Assume that you have just sold a stock for a loss at a price of $75 for tax purposes. You still wish to maintain exposure to the sold stock. Suppose that you sell a put with a strike price of $80 and a price of $7.25. Calculate the effective price paid to repurchase the stock if the price after 35 days is $70.

• A) $77.75
• B) $87.25
• C) $82.25
• D) $72.75
• E) $85.25