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 $7.25. Calculate the effective price paid to repurchase the stock if the price after 35 days is $70.
A) $77.75
B) $87.25
C) $82.25
D) $72.75
E) $85.25

Question

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The Answer of 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 $7.25. Calculate the effective price paid to repurchase the stock if the price after 35 days is $70.
A) $77.75
B) $87.25
C) $82.25
D) $72.75
E) $85.25

Assume That You Have Just Sold a Stock for a Loss