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An Investor Short Sells 100 Shares of Stock Short at $40

Question 91

Essay

An investor short sells 100 shares of stock short at $40.
a. Ignoring commissions, at what price will the investor earn $700?
b. Ignoring commissions, what is the gain or loss if the stock price goes to $53 and the investor closes out the position?

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(a) When the stock drops 7 points to blured image, t...

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