Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
Suppose that Tesla stock is currently selling at $270 per share. For each of the following situations (ignoring brokerage commissions), calculate the gain or loss that Olivia Crowe realizes if she makes a 100-share transaction.
- She sells short and repurchases the borrowed shares at $295 per share.
- She takes a long position and sells the stock at $295 per share.
- She sells short and repurchases the borrowed shares at $255 per share.
- She takes a long position and sells the stock at $255 per share.
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