Assume That you have just sold a share for a loss of $75, for tax purposes. You still wish to maintain exposure to the sold share. Suppose that you buy a call with a strike price of $70 and a price of $6.75. Calculate the effective price paid to repurchase the share if the price after 35 days is $80.

Answer rating: 100% (QA)

Working Since the market Price of the share at 80 is above the strike price of ... View the full answer