Assume that IBM stock is selling for $110 per share and that you short sell 200 shares
Question:
a. What would be your dollar return if the price of IBM stock drops to $95 per share?
b. What would be your dollar return if the price of IBM stock increases to $120 per share?
c. Is there a limit to your gains? Is there a limit to your losses? Explain.
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P 0 110 a P 1 95 Short gain 200110 95 3000 b P 1 1...View the full answer
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