Assume That You Have Just Sold a Stock for a Loss

question 65

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 $85.

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

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Definitions:

Glucose

An essential form of sugar that acts as a significant energy provider in living entities and is a part of various carbohydrates.

Hormones

Chemical messengers produced by glands, which travel through the bloodstream to regulate bodily functions and processes.

Peripheral Membrane Proteins

Proteins that are attached to the surface of cellular membranes without being embedded within the lipid bilayer, often involved in signaling pathways or cell adhesion.

Cell Membrane

The semipermeable membrane surrounding the cytoplasm of a cell, which regulates the passage of substances in and out of the cell.