Assume that you have just sold a stock for a loss at a price of $75, for
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Question:
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 $8.25. 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. | $76.75 |
Related Book For
Fundamentals of Financial Management
ISBN: 978-0324597707
12th edition
Authors: Eugene F. Brigham, Joel F. Houston
Posted Date: