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An Investor Has Unrealized Gains in 100 Shares of Amazin

question 26

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An investor has unrealized gains in 100 shares of Amazin stock upon which they do not wish to pay taxes. However, they are now bearish upon the stock for the short term. The stock is at $76 and he buys a put with a strike of $75 for $300. At expiration the stock is at $68. What is the net gain or loss on the entire stock/option portfolio?


Definitions:

Argument By Analogy

A reasoning method where one infers that two things are similar in one aspect, so they are probably similar in another.

Property P

An unspecified characteristic or attribute that an object, person, or concept possesses.

Similar

Resembling without being identical; having likeness in qualities, characteristics, or appearance.

Inductive Generalization

A type of reasoning that draws general conclusions from specific examples.

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