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
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 |
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International Financial Management
Authors: Geert Bekaert, Robert J. Hodrick
1st Edition
0131163604, 9780131163607
