The original stock price was $88. On the first day, that increased by $19.40, resulting in a new price of $107.40.
On the second day, that $107.40 decreased by 5 3/4%. To obtain the new stock price, subtract 5 3/4% from 100% and mult. $107.40 by the result (in fractional form):
(100% - 5 3/4%)$107.40 => 0.9425($107.40) = $101.22 (answer)