Answer:
$60 per share
Explanation:
Given the transaction above, the customer intend to take a loss and then reestablish the position.
Thus, going by "wash sale" rule, the loss deduction is disallowed in a situation where by the position is reestablished within 30 days of the date the loss was generated.
Hence, In this case the customer initially sold short the stock at $62. The stock was later repurchased at $67, for a $5 loss per share which equate to $500 loss on 100 shares.
Again, the customer sold short another 100 shares exactly 30 days later at $65 (to avoid the "wash sale" rule, the position cannot be reestablished until the 31st day). This made the $500 loss to be disallowed.
At this point, the $5 per share loss will be deducted from the sale proceeds of $65, for a new sale proceeds of $60.
Hence, this ensures the taking of the loss until this short position is covered.
