Question: Need help on these 4 multiple choice questions please! Use the following information to answer Questions 32-35 below. You sold short 1.000 shares of Loser

 Need help on these 4 multiple choice questions please! Use the
Need help on these 4 multiple choice questions please!

Use the following information to answer Questions 32-35 below. You sold short 1.000 shares of Loser Ca p rice of 565 per share. Many man your view of the company, Shares of Loser Co are the largest short positio 30% per share. Many market participants agree with are the largest short position on the S&P/TSX Index. 32. Your maximum possible loss on your trade is: A. Zero BS6.500 C. $65.000 D. $130,000 E. Unlimited 33. With respect to your position in Loser ce which of the following orders is most useful if you wish immediate execution of the trade? A. Fill or kill order B. Limit order C. Stop-loss order D. Stop-buy order E. Day order 34. Loser Co. surprises the market by developing a product that is a massive hit, with strong global demand. The price of the stock rises sharply. Which of the following factors most likely contributed to the increased stock price? Market participants now expect the company to have higher revenues Massive selling due to a "short squeeze" Short-sellers are increasing their positions in the stock III. A. I only B. II only C. I and II only D. I and III only E. I, II, and III 35. The initial margin on your short sale of Loser Co. is 50%. At what stock price would you receive a margin call if the maintenance margin is 30%? A. $69.64 B. $75.00 C. $78.46 D. $86.54 E. None of the above

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!