Suppose your company’s stock is currently selling at $50 per share. For each of the following situations (ignoring brokerage commissions), calculate the gain or loss that will be realized if the transactions are made with 100 shares.
a. A repurchase of borrowed shares at $60 per share.
b. A long position is taken and the stock is sold at $65 per share.
c. A short sell and repurchase of borrowed shares at $35 per share.
d. A long position is taken and the stock is sold at $50 per share.