Assume That You Have Just Sold a Stock for a Loss

Multiple Choice

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 buy a call with a strike price of $70 and a price of $6.75. Calculate the effective price paid to repurchase the stock if the price after 35 days is $80.

A) $81.75
B) $73.25
C) $86.75
D) $76.75
E) $85.25