Instruction: - The solution to each question should include detailed calculation steps and (or) explain why you choose that answer. No any step means ZERO point.

6. You wish to sell short 100 shares of XYZ Corporation stock. If the last two transactions were at 34.10 followed by 34.15, you only can sell short on the next transaction at a price of

a. 34.10 or higher

b. 34.15 or higher

c. 34.15 or lower

d. 34.10 or lower

You have been given this probability distribution for the holding period return for XYZ stock:

State of the Economy	Probability	HPR (%)
Boom	0.30	18
Normal Growth	0.50	12
Recession	0.20	-5