8. GameStop is currently trading at $95/share. You think its price is too high and decide...
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8. GameStop is currently trading at $95/share. You think its price is too high and decide to short sell 100 shares of GameStop. a. What is your profit if GameStop increases to $150/share? b. Why is the possible profit limited in a short sale transaction, whereas the possible loss is not bounded? 8. GameStop is currently trading at $95/share. You think its price is too high and decide to short sell 100 shares of GameStop. a. What is your profit if GameStop increases to $150/share? b. Why is the possible profit limited in a short sale transaction, whereas the possible loss is not bounded?
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a If GameStop increases to 150share then the short seller would face a loss on the transaction The p... View the full answer
Related Book For
Fundamentals of Investing
ISBN: 978-0133075359
12th edition
Authors: Scott B. Smart, Lawrence J. Gitman, Michael D. Joehnk
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