Let's denote the cost of each of the first three tires as \( x \).
According to the deal, Sebastian buys three tires at price \( x \) each and the fourth tire costs $5. The total cost can be expressed with the following equation:
\[ 3x + 5 = 237.50 \]
To find \( x \), we first isolate the term with \( x \):
\[ 3x = 237.50 - 5 \]
\[ 3x = 232.50 \]
Now, we divide both sides by 3 to solve for \( x \):
\[ x = \frac{232.50}{3} = 77.50 \]
So, the cost of each of the first three tires is $77.50. Thus, the correct response is:
$77.50