Question
On 1/1/2014 A buys 1,000 shares of X stock for $100 per share. On 10/1/14 X is trading at $125 and A buys a $125
On 1/1/2014 A buys 1,000 shares of X stock for $100 per share. On 10/1/14 X is trading at $125 and A buys a $125 put on 1,000 shares for $10 /share. On 12/21/14 value of X appreciates to $150 per share and put expires worthless. On 12/31/14 value of X is $105. How much gain/(loss) does A recognize assuming no other trading took place during 2014?
A. ($10,000)
B. $5,000
C. $0
D. ($5,000)
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Sound Investing, Chapter 21 - Cash From Operations Cons
Authors: Kate Mooney
1st Edition
0071719431, 9780071719438
