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.
If A sells shares of X stock in 2015 at $107/share, how much total gain/(loss) does A recognize in 2015?
A. $7,000
B. $2,000
C. $0
D. $12,000
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Intermediate Accounting
Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones
10th Edition
324300980, 978-0324300987
