Abby Deere took the advice of a close friend and short sold 100 shares of Techware common

Question:

Abby Deere took the advice of a close friend and short sold 100 shares of Techware when its market price was $105.
a. How much will Abby gain or lose (in dollars) if the price of Techware is $120 when she repurchases the stock to close her short sale position?
b. How much will Abby gain or lose (in dollars) if the price of Techware is $95 when she repurchases the stock to close her short sale position?
c. What is the most that Abby can gain from her short sale position? Explain why.
d. What is the most that Abby can lose from her short sale position? Explain why.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...