The correct answer is A ($402). The holding period return (HPR) is calculated as the total return from holding an asset over a single period, including both price appreciation and income (e.g., dividends). The formula for HPR is:

$R = \frac{(P_1 - P_0) + I}{P_0}$

Where:

• $P_0$ is the initial price ($450),
• $P_1$ is the sale price,
• $I$ is the income received ($2).

Given a loss of 10.2%, we rearrange the formula to solve for $P_1$:

$P_1 = R \times P_0 + P_0 - I$ $P_1 = (-10.2\%) \times 450 + 450 - 2 = 402.1 \approx 402$

Option B ($404) is incorrect because it ignores the dividend impact, leading to an HPR of -9.8%. Option C ($406) is incorrect as it adds the dividend instead of subtracting it, resulting in an HPR of -9.3%.