Question

Assume you sell 100 shares of Bowie Corporation short at $72. You also buy a 70 call option for 5.25 to protect against the stock price going up.
a. If the stock ends up at $90, what will be your overall gain or loss?
b. If the stock ends up at $50, what will be your overall gain or loss?
c. If you have an unprotected short sale position (no call option), what is the most you could lose?



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  • CreatedJuly 29, 2013
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