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Which of the following BEST describes a wash sale?

A. Buying and selling the same security simultaneously

B.
Buying stock while selling the equivalent convertible bonds

C. Exercising an option at-the-money

D.Selling securities to take a loss for tax purposes, then buying them back



Correct Answer: D

"A" and "B" are examples of arbitrage; "C" is just an unproductive transaction.



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